After Greece's election results, the metal lost almost 1% at yesterday's afternoon London session of a 5-month high. Traders have shifted their eyes on tomorrow's Federal Reserve meeting. This year, the yellow metal has jumped 10% supported by the European factors like ECB's QE and Greek elections. After the election results, the yellow metal again lost its safe-heaven tag. Ahead of the FOMC meeting, the optimistic USD put pressure on the yellow metal towards the down side. This week's US economic events are affecting the metal, like FOMC meeting, interest rate decision, and GDP data. As I recommended in my previous report, buying above $1,300.00 has not been triggered. We recommended selling below $1,283.00 with the target at $1,272.00. Today, at Asia's session the metal made a low at $1,272.00. In case if the metal breaks below $1,271.80 being January 19th low, it can extend its fall towards $1,269.00, $1,266.50, $1,262.50, and $1,255.00. In case a weekly close is below $1,266.00, bears will tighten their grip towards $1,255.00, $1,238.00, and $1,214.00. On the bullish front, we can expect strong upward momentum only above $1,307.00 towards $1,340.00. On the h4-chart, the metal fell below an hourly moving average and is trading below it. Until the prices trade and close below $1,297.50 and $1,300.00, bears will have an upper hand. But fresh selling will be triggered only below $1,271.00. The hourly resistance exists at $1,280.00, above this the $1,283.00 and $1,287.00 levels will act as strong resistance levels. For risky traders, buying will be triggered only above $1,287.00 levels.
NOTE:
Fresh selling only below $1,271.00.
