TECHNICAL ANALYSIS
On the daily chart, we can see that Gold tried to rally above the 1934 resistance but got smacked back down soon after following the FOMC meeting. The price left a long tail on the resistance, which is usually a reversal signal, but a lot will depend on the data. The sellers though are likely to pile in here with a defined risk above the resistance to target the 1893 support. The buyers, on the other hand, will want to see the price to rally back above the resistance to invalidate the bearish setup and start targeting the 1984 resistance. On the 4 hour chart, we can see more closely what could end up being a fakeout. The price made a new lower low following the FOMC meeting and the moving averages have crossed to the downside. This might be an early signal of another selloff into the support incoming as the market structure turned from bullish to bearish. On the 1 hour chart, we can see that we had a divergence with the MACD right when Gold was trying to break out. This is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, the support zone around the 1923 level will be key as the buyers are likely to pile in here with a defined risk below the level to target a new high, while the sellers will look for a break lower to position for a selloff into the 1893 support.
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