Gold dipped after the US released its latest data on inflation. The metal lost 3,000 pips, but did not breach the key highs of June and May.
Today's announcement on the Fed's interest rate decisions could be a good reason for a decrease in prices.
Having a three-wave pattern (ABC), where wave A represents yesterday's bearish momentum, traders could open short positions with a 50% retracement based on the Fibonacci levels. Limit the risks at 1970, and then take profit upon the breakdown of 1937 and 1931.
Alternatively, a downward momentum could be based on signals from smaller time frames, targeting the levels mentioned above.
The trading idea came from the framework of the "Price Action" and "Hunt for Stops" strategies.
Good luck in trading and manage your risks. Have a great day ahead!
