Gold Elliott Wave Analysis: The Bulls Are Back In Control as the Market Awaits FOMC

Gold returned upside after yesterday’s Dollar sell-off. Ahead of today’s FOMC what next? The following give insights based on Elliott wave theory.

November 29, 2018 | AtoZ Markets Gold has found its way back to 1227 after the dollar fell massively yesterday following Fed’s dovish comments. The bullish trend might resume above 1243 if the dollar sell-off continues today after the FOMC meeting. Today the Fed will release the minutes of the 7-8th November FOMC meeting. At the meeting, the committee voted 9-0 to raise federal fund rate to 2.25% from 2.0%. In today’s meeting, markets will read into any hawkish or dovish statements which will in turn affect the short term Dollar price. If the dovish tone persists, the Dollar sell-off is expected to continue. Gold might break above 1243 and continue upside till December.

From a long term Elliott wave perspective, a break above 1243 might see further rallies to 1360. The long term bullish triangle pattern can then continue. If 1243 holds and price drops below 1200, a dip below 1150 is very much likely. The long term bearish forecast eyes a long term flat pattern ending above 1122. In the last update, we looked at the lower degree price behavior. Price completed a zigzag pattern with a head and shoulder reversal pattern at the top. It dropped as expected to 1212. The drop to 1212 looks as much as corrective as impulsive. The corrective scenario prevailed after a break above the double zigzag channel. The bulls are closer to breaking above 1243 than bears below 1200 and therefore has a better chance.

Gold Elliott Wave Analysis and Important Price Levels

With the quick bounce off 1211-1212 support, the bullish trend might continue above 1230. A small dip to 1220 might happen before the big break. The market is expected to be quiet prior to the meeting, awaiting a clue to trigger the next direction. On the downside, a fast drip below 1211 will see price coming to retest 1196. A dip below 1196-1200 will set the market rhythm bearish again. 1211 and 1230 are the nearest most important support and resistance levels respectively above/below which price might trend properly.

Please share your thoughts with us in the comment box below.

    Share Your Opinion, Write a Comment