Gold is in a bearish trend and momentum but is due for a retest at the previous low where the support has now turned resistance. We will be capitalizing on the corrective move before another impulse bearish move takes place. We will be looking to go long on gold at 1665 and continue till 1695. 

The descending trendline has been broken out for buys but then, market got stuck in the range and has the potential to break above the resistance. 

The retracement area is set for the bearish leg, for us, it would be the potential profit target area at the level of 61.8%. 

EMA 50 is still bearish and may have a retest at the retracement and resistance confluence area. This area will act as a catalyst for our profit target.

RSI is at 50. This means, market is priming for the bullish move. But, right now, we are not looking to take a buy as we have to wait for the market to tap the support area where we can possibly see a bullish divergence forming. 

It should be noted, today, we have FOMC and the market may do abnoxious moves. We have to be aware of the risk the FOMC carries. Overall trend is still bearish. So manage risk accordingly.

FOMC on gold

Sep 21 2022