Gold retraced back 50% of the upward move from 1122 to 1263, while it’s currently consolidating above the psychological 1200 level. Although there are events like Netherland’s elections and European’s uncertainty as Brexit or Greece’s talks that may push investors to traditional safe assets, their main focus will be on the FOMC meeting tomorrow. The rate hike is widely expected, but traders look forward to policymakers updating the fiscal projections in order to define the next leg of directional move for the commodity
XAUUSD Technical View
Considering, Gold is in range around 1200 area, above 50% Fibonacci level. Next major support is 1176, 61.8% Fibo level. Using Stochastics (9.3), we have noted what the bulls or bears need to happen according the past price action.
Gold broke out of the downside channel, but it didn’t manage to move much higher than 1208 area. Therefore, it has formed a major swing high, bulls want to break it out and create a higher high pattern. On the other hand, if price violates 1198, then it may go lower to 61.8% as noted on daily chart.