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18 Sep 2013
Gold breaks below $1,300, bears in control ahead of FOMC
FXstreet.com (Barcelona) - Ahead of the FOMC monetary policy decision, Gold has taken another stab at the Tokyo open, taking the shinny metal electronic price from $1,307 down to $1,293.
Gold has been under sustained selling pressure ever since topping out its multi-week corrective move at 1,433.00. Despite the underperformance by the US Dollar early in the week following the withdrawal of Summers for the Fed job, Gold prices failed to rally at all, quite indicative of the bearish sentiment in the metals market at the moment.
According to Chris Capre, Founder at 2ndSkies: "Dropping almost $130 from its recent highs at 1433, Gold is showing some intraday price action on the 4hr chart that is suggesting lower prices and a likely breakout."
Capre adds: "Recent rallies are being sold forming LH’s (lower highs) each time along with a 20ema carry and price action squeeze (all signs of a likely breakout). Support is at 1302, so should there be a 1hr breakout and close below this and 1297, then next major support comes in between 1282 and 1272 - pin bar reversal of the last major upleg leading to the 1433 swing highs.-"
Gold has been under sustained selling pressure ever since topping out its multi-week corrective move at 1,433.00. Despite the underperformance by the US Dollar early in the week following the withdrawal of Summers for the Fed job, Gold prices failed to rally at all, quite indicative of the bearish sentiment in the metals market at the moment.
According to Chris Capre, Founder at 2ndSkies: "Dropping almost $130 from its recent highs at 1433, Gold is showing some intraday price action on the 4hr chart that is suggesting lower prices and a likely breakout."
Capre adds: "Recent rallies are being sold forming LH’s (lower highs) each time along with a 20ema carry and price action squeeze (all signs of a likely breakout). Support is at 1302, so should there be a 1hr breakout and close below this and 1297, then next major support comes in between 1282 and 1272 - pin bar reversal of the last major upleg leading to the 1433 swing highs.-"