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SpanishGold Trades in Rigid Boundaries Ahead of U.S. FOMC Meeting, $15+ Movement Likely; June 16, 2021
U.S. FOMC Interest Rate Decision & Press Conference
The wait is over and the D – Day comes. Indeed it will be the Decision Day to predict the future direction of the U.S. dollar and accordingly how major peers will move in short to medium term. It’s the primary tool the Fed uses to communicate their economic and monetary projections to investors. U.S. FOMC Statement discusses the economic outlook and offers clues on the outcome of future votes. FOMC continues to keep watch on recently released Economic Data in favor of rising prices and to meet the economic projections.
Key Predictions on FOMC Monetary Policy:
- If the Fed is cautious, they will wait till the real data improves before admitting that it is time to start talking about tapering their $120 billion a month bond buying program.
- On the other side, market conditions are suitable for Taper Talk to start.
- World stocks are rising and traders are too optimistic on the U.S. Economy.
- If the Fed confirms to begin Taper Talk, U.S. dollar will strengthen.
- If the Fed avoids talking taper and delays the immediate need of it, U.S. dollar could fall forcefully.
Let’s see how Gold has reacted during the previous FOMC Statement:
April 28:
March 17:
Technical View:
XAUUSD (Gold):
- Gold Continues to trade in stiff boundaries ahead of U.S. FOMC Rate decision.
- The pair made intraday high at $1,861 and low at $1,852 mark.
- A day chart is up but H1 chart with triple EMA confirms down trend for the time being.
- A sustained close above $1,862 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,852 will check further supports.
| SUPPORTS | Resistances |
| $1,852 | $1,862 |
| $1,847 | $1,867 |
| $1,841 | $1,872 |
| $1,836 | $1,876 |
| $1,831 | $1,881 |
Take a look and do trade wisely!
Good Luck
