Gold drifted lower yesterday morning, though found support around 1653, the 61.8% retracement of the rally from 1625 to 1697. The market then stabilised for the rest of the day and is attempting a rally this morning.
The "impulsive" nature of the decline compared to the choppy, overlapping rise up to 1697 suggests that the current rally is a B wave within an ABC correction, with further declines to come once this B wave has run its course.
Now that options expiry is out of the way, the focus of the markets will switch to the two day FOMC meeting that starts today and the subsequent announcement tomorrow evening. Following that, the highly anticipated and closely watched US jobs numbers are released on Friday.
As we have mentioned before, the jobs numbers have taken on an even greater significance since the Fed announced that future economic stimulus measures will be made with regard to their stated aim of a 6.5% unemployment rate.
Today's video looks at our targets for this B wave and our strategy for our current trade.
The "impulsive" nature of the decline compared to the choppy, overlapping rise up to 1697 suggests that the current rally is a B wave within an ABC correction, with further declines to come once this B wave has run its course.
Now that options expiry is out of the way, the focus of the markets will switch to the two day FOMC meeting that starts today and the subsequent announcement tomorrow evening. Following that, the highly anticipated and closely watched US jobs numbers are released on Friday.
As we have mentioned before, the jobs numbers have taken on an even greater significance since the Fed announced that future economic stimulus measures will be made with regard to their stated aim of a 6.5% unemployment rate.
Today's video looks at our targets for this B wave and our strategy for our current trade.