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Tapering

Gold bears bracing for Fed’s verdict inside $25 rangeGold traders prepare for the end of two-week-long choppy moves between 200-DMA and an ascending trend line from early October with eyes on the US Federal Reserve (Fed) decision. With the faster tapering and a hint to rate hike in 2022 expected, bears are hopeful. However, Omicron fears are up for throwing a wild card and can fuel the precious metal prices should the Fed sounds cautious. In that case, a clear run-up beyond the 200-DMA level of $1,794 won’t be enough as the $1,800 threshold will act as a validation point to welcome the bulls. Following that, $1,815 and $1,834 should offer buffers before directing the quote to $1,850 and November’s peak of $1,877. Meanwhile, a downside break of the $1,770 support confluence, comprising a 10-week-old rising trend line and 50% Fibonacci retracement (Fibo.) of August-November upside, will direct bears towards $1,745 and $1,721 support levels. If the gold sellers keep reins past $1,721, the $1,700 threshold and the yearly low surrounding $1,668 will be in focus. Overall, gold prices remain vulnerable to the downside but surprises lurk behind the door, be cautious!
OANDA:XAUUSDShort
by MTradingGlobal
Gold heads to $1,790 key hurdle with eyes on Fed taperingRisk-on mood helps gold extend the early-week rebound towards the key upside resistance area during early Wednesday. In addition to the confluence of 200-EMA, a descending trend line from September 03 and a five-week-old support line, fears of the Fed’s tapering also challenge gold buyers. Should the Fed refrains from providing any signals to the 2021 taper, versus the widely expected move, gold prices may overcome the stated resistance near $1,790 and rush towards the $1,834 double top. During the run-up, the $1,800 threshold and multiple stops marked during late August around $1,817-18 may test the bulls. Meanwhile, pullback moves may aim for 50% and 61.8% Fibonacci retracement levels of August 09 to early September upside, respectively near $1,755 and $1,737. Following that, the August 10 low near $1,710 and the $1,700 round figure could flash on the bears’ radars before the yearly low close to $1,678 gains the market’s attention. Overall, gold approaches tough resistance to justify the strength of recovery moves as markets brace for the Federal Open Market Committee (FOMC) monetary policy meeting announcement
OANDA:XAUUSDLong
by MTradingGlobal
AUDUSD bears attack 0.7400 key support despite RBA taperingEarly Tuesday, the Reserve Bank of Australia (RBA) surprises markets by announcing details of weekly bond purchase tapering. The traders were earlier hoping for a delay in the tapering plans and hence the AUDUSD jumped around 30 pips just after the RBA news. However, downbeat comments concerning the Aussie GDP and cautious economic view recall the pair sellers, directing them towards 61.8% Fibonacci retracement of July–August downside, near 0.7410. Also acting the crucial support is an upward sloping trend line from August 20, near the 0.7400 round figure. Given the RSI pullback from overbought territory, AUDUSD may witness further declines and hence the stated support line gains major attention. Alternatively, a descending resistance line from July 13, near 0.7480, guards the quote’s short-term upside. In a case where the AUDUSD bulls look to retake controls beyond 0.7480, they need validation from the 0.7500 threshold, a break of which will propel the run-up towards July month’s high near 0.7600. Overall, RBA’s cautious optimism needs back-up from the weaker US dollar and improvement in the covid conditions to keep the AUDUSD buyers hopeful.
by MTradingGlobal