Gold continues to trade around $1,160 just below the 61.8% Fibonacci retracement. With the FED rate announcement tonight we could see big swings in prices. Today could be the day we see the much anticipated reversal in Gold or a sell off towards next support of $1,120.
Blue lines - bullish divergence signs
In the Daily chart we observe bullish divergence signs. Trend change will be confirmed on a break above $1,180 with $1,240-70 as the first target area. Support is at $1,150 and if broken we should expect a move towards $1,120.
The bullish wedge pattern will give a bullish signal on a break above $1,180. Price is below weekly Ichimoku cloud and the longer it stays below it, the worse for the longer-term bullish view I have. $1,120 is the 78.6% Fibonacci retracement and last support that should hold for bulls. A move below it will diminish the chances of a bullish reversal.
