Blue rectangle- support
Black lines- Fibonacci retracements
Although initial reaction after the FOMC announcements was bearish for Gold, bulls managed to hold price above the horizontal key support area of $1,650. Gold tested the horizontal support at least twice yesterday and so far it remains intact. Gold has tested the horizontal support more than 3 times over the last week and bulls continue to defend it. After the FOMC announcement Gold price spiked higher towards the 38% Fibonacci retracement. Gold bounced towards $1,687 but sharply came back down. This price level is now our most important resistance. Bulls need to break above it in order to reclaim control of the short-term trend.
