Early in the American session, Gold (XAU/USD) is trading around 1,655, above the 21 SMA, and 200 EMA (1,650). You can see the formation of the symmetrical triangle on the 1-hour chart. A sharp break above the strong resistance at 1,659 and a close on the 1-hour chart would trigger a bullish acceleration for the price to reach 1,675 and 1,687 (6/8).
On the other hand, in case gold breaks the symmetrical triangle below 1,650, we can expect a resumption of the bearish cycle and the price could fall back towards 4/8 Murray located at 1,625.
In the next few hours, the United States will publish the monetary policy decision: an increase of 0.75% is expected. If this decision is consistent with market expectations, we could expect a drop in gold.
On the contrary, if the actual rate hike is lower than expected or if the FED Chairman's speech does not provide a positive expectation for the future, we could expect gold to resume its bullish cycle and the price could rise from 1,660 and reach the level of 6/8 Murray at 1,687.
The eagle indicator on the 1-hour chart is reaching extremely overbought levels. We can also see that gold has formed a double-top pattern. In case this pattern prevails, we could expect confirmation for a bearish move and the price could drop below 1,650-1,625.
Our trading plan for the next few hours is to sell below 1,656 due to strong resistance located on the 1-hour chart or wait for a break and close below the 200 EMA located at 1,650 to sell with targets at 1,625.
