Gold collapsed on Monday and Tuesday, but today rebounded ahead of the Fed's meeting on monetary policy.
Many expect the central bank to take more aggressive actions, so it is likely that the price will dip again before the end of the day.
Given that there is a three-wave (ABC) pattern, where wave A represents the selling pressure for the last two days, traders can open short positions from current prices up to the 61.8% and 50% retracement levels. Set stop loss 1870, and take profit on the breakdown of 1786 and 1676.
This strategy is based on the Price Action and Stop Hunting methods.
Good luck and have a nice day!
