Gold may test 1830/1835 if it breaks below the $1850 Support

23 במאי 2022

If Gold stable again below $1850, then Gold could test $1835/1830 again.

As can be seen from the 1 hour chart, Gold is still in a somewhat bullish mode. However, if the hourly candle breaks below $1850, the picture may change. Until the FOMC tomorrow, it looks like Gold will make a drop till 1830/1835.

However, testing below $1830/1835 will be very rare till FOMC. On the other hand, there is a chance of a hawkish statement tomorrow. As such, there is a better chance to test Gold 1630/1835 by winning the prize earlier today or $1810 again tomorrow and if the statement is too hawkish.

Since $1835/1830 is quite a strong trend line support, it is expected that the market may rise again from $1835/1830 as well as. And the stop loss should not be more than $1825. Because if 1825 breaks out, only FOMC is too hawkish and Powell is too aggressive. Although the chances are high. But there is a saying, buy the rumor sell the fact. And in recent times it's been too much.

At FOMC, we must trade based on our statements. This analysis and set up is valid only up to FOMC.

And even if the market rises from the current rate, there is nothing to be surprised about. Because in the short time frame the market is still above the trend line support level. Although it is less likely to happen.