{"id":113214,"date":"2017-09-20T07:50:18","date_gmt":"2017-09-20T11:50:18","guid":{"rendered":"http:\/\/countingpips.com\/?p=113214"},"modified":"2017-09-20T06:41:56","modified_gmt":"2017-09-20T10:41:56","slug":"mid-term-trading-idea-xauusd-to-buy-or-to-sell-the-feds-decision-will-tell","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/mid-term-trading-idea-xauusd-to-buy-or-to-sell-the-feds-decision-will-tell\/","title":{"rendered":"Mid-term trading idea XAU\/USD \u2013 to buy or to sell? The Fed\u2019s decision will tell"},"content":{"rendered":"
September 20, 2017<\/div>
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By Veselin Petkov, Alpari<\/strong><\/p>\n

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Today, before the opening of the European session, gold was trading at 1,313.54 USD per Troy ounce. This is the second day in a row that gold has traded below the trend line on the 4-hour timeframe.<\/p>\n

It\u2019s still unclear whether the recent breakout of the trend line is false or not. I reckon that we could find out after the Federal Reserve meeting has ended. So, I\u2019ll be looking either to buy or sell depending on the Fed\u2019s decision. I\u2019m considering the following two options:<\/p>\n

First option<\/strong><\/p>\n

If the Fed decides to keep the key rate at its current level today, and maintain, or reduce, the current trajectory of rate hikes, I\u2019ll be looking to sell. From a technical point of view, I\u2019ll be looking to sell if gold follows the following trajectory on the H4 timeframe:<\/p>\n

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Conditions: After the Fed\u2019s meeting ends, the price continues to fall, rebounds from the \u201cdouble top\u201d level or lower, subsequently forms a top lower than 1,320 \u2013 1,325 USD, and continues to move downwards. If this scenario plays out, I\u2019ll open a short position. I\u2019d like to add that the more the Fed softens its stance on monetary policy, or its rhetoric, the better it will be for the US dollar in the short term, and worse for gold.<\/p>\n

Second option<\/strong><\/p>

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If the Fed decides today to raise the key rate, or maintain it at its current level of 1.00% – 1.25%, but significantly raises the trajectory of rate hikes (i.e. tightens its rhetoric on monetary policy), I\u2019ll be looking to buy. From the technical side, I\u2019ll be looking to open a trade if gold prices follow the scenario outlined in this 4-hour chart:<\/p>\n

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Conditions: The price continues to grow after the Federal Reserve\u2019s meeting ends, before which it mustn\u2019t dip below the double top level of 1,290 \u2013 1,293 USD (so as not to break the upwards trend on H4). If growth continues, I\u2019ll open a long position. The stronger the Fed tightens its monetary policy, or its rhetoric on the subject, the higher the price of gold will rise.<\/p>\n

Source: “Mid-term trading idea XAU\/USD \u2013 to buy or to sell? The Fed\u2019s decision will tell<\/a>“<\/div>\n<\/div>\n
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By Veselin Petkov, Alpari Today, before the opening of the European session, gold was trading at 1,313.54 USD per Troy ounce. This is the second day in a row that gold has traded below the trend line on the 4-hour timeframe. It\u2019s still unclear whether the recent breakout of the trend line is false or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-113214","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=113214"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113214\/revisions"}],"predecessor-version":[{"id":113215,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113214\/revisions\/113215"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=113214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=113214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=113214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}