It seems like the recent USD bear run is losing steam that is according to observations made in the last couple of days. While it is imperative to know the effects that might stem out of the continued allegation of Trump and his associates by the DoJ, much focus will be the impact done on the intended economic program and reforms Trump promised when he took over. With today’s FOMC meeting set to be released, investors will be keen on noticing any changes and plans that policy decision makers have up their sleeve in the coming months. As the year begun, the Feds were projected to raise rates between 3-4 times by end of 2017. Rates were hiked in March and there is a strong chance another hike will follow in June placing the Fund rate between 1%-1.25% at a 95% according to Bloomberg and this is why today’s FOMC meeting minutes will be important.
I will therefore trade Gold and look to short because of technical considerations. First off, after that bear run from the end of April, prices corrected early this month and oscillated towards $1260 per ounce where it found considerable resistance. This level of resistance proved itself twice as price failed to breach the $1265 level. A sell signal was printed by the stochastics and this is coincides with the 38.2% reversal level when a Fibonacci tool is placed at the Hi-Lo of the recent rally.
This therefore means trading as follows:
Stop Loss: 1265
Take Profit: 1215
Have a good trading day