empty
26.01.2022 09:00 PM
Gold upside invalidated, FOMC under spotlights

The price of gold plunged after reaching 1,853.88 yesterday's high. The price action developed a Rising Wedge pattern. Still, the reversal formation is far from being confirmed. You have to be careful as the fundamentals will move the rate later. Dovish FOMC could boost the XAU/USD, while more hawkish than expected FED could push the yellow metal towards new lows.

Gold dropped by 1.34% from yesterday's high to 1,829.01 today's low. The pressure is high ahead of the FOMC. The FED is expected to keep the Federal Funds Rate at 0.25%. Still, the FOMC Statement and the FOMC Press Conference could really shake the markets. You have to be careful as a dovish or hawkish tone could bring sharp movements.

XAU/USD massive drop

This image is no longer relevant

Gold registered only a false breakout above the weekly R1 (1,853.10) and now it has reached the 1,829.37 weekly pivot point. It has failed to stay above the Ascending Pitchfork's lower median line (LML) and above 1,834.19 - 1,831.83 signaling strong sellers and that the upside movement ended.

Still, in my opinion, only a valid breakdown below the Rising Wedge's support, through the black uptrend line, and below the outside sliding line (SL1) could really confirm a downside reversal. Staying above the weekly pivot point and above the black uptrend line could announce a new bullish momentum.

XAU/USD forecast

Technically, XAU/USD is in a support zone, false breakdowns could signal a potential rally. A valid breakdown below the immediate support levels could activate a larger downside movement.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD Forecast for May 15, 2025

On Wednesday, the euro managed to rise to the target level of 1.1266 (the lows from April 15 and May 1), but in the absence of external support (S&P

Laurie Bailey 04:40 2025-05-15 UTC+2

GBP/USD Forecast for May 15, 2025

The British pound struggles to break above the 1.3311 resistance level with a daily candle close. In the current context, this level aligns with the zero (neutral) line

Laurie Bailey 04:40 2025-05-15 UTC+2

USD/JPY Forecast for May 15, 2025

By the end of yesterday's trading session, the USD/JPY pair declined by 73 pips, testing the MACD indicator line with a lower shadow. It's clear that an attempt to consolidate

Laurie Bailey 04:40 2025-05-15 UTC+2

Trading Signals for EUR/USD for May 14-19, 2025: sell below 1.1230 (200 EMA - 21 SMA)

The euro is expected to continue its fall in the coming hours. Therefore, we should expect a close below 1.1186 on the H4 chart. Then, the price could slide

Dimitrios Zappas 18:06 2025-05-14 UTC+2

Trading Signals for GOLD for May 14-19, 2025: buy above $3,175 (200 EMA - rebound)

Gold left a gap around 3,325. It is likely to be filled in the coming days. For this, we should wait for gold to consolidate above 3,230, then the outlook

Dimitrios Zappas 18:05 2025-05-14 UTC+2

WTI - West Texas Intermediate. Analysis and Forecast

Prices for U.S. crude oil West Texas Intermediate (WTI) are consolidating near a one-month high, pausing a four-day winning streak, although the intraday pullback lacks bearish conviction. WTI prices

Irina Yanina 17:55 2025-05-14 UTC+2

EUR/USD Analysis on May 14, 2025

On Tuesday, the EUR/USD pair rebounded from the support zone of 1.1074–1.1081 and reversed in favor of the euro, climbing by 110 points. Thus, the bears' joy was short-lived

Samir Klishi 11:20 2025-05-14 UTC+2

GBP/USD Analysis on May 14, 2025

On the hourly chart, the GBP/USD pair continued its upward movement on Tuesday after bouncing off the 1.3139 level. Judging by the wave structure, the bearish trend has not been

Samir Klishi 11:17 2025-05-14 UTC+2

Forex forecast 14/05/2025: EUR/USD, GBP/USD, Oil, Ethereum and Bitcoin

Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful

Sebastian Seliga 10:01 2025-05-14 UTC+2

Technical Analysis of Intraday Price Movement of AUD/JPY Cross Currency Pairs, Wednesday May 14, 2025.

Although on the 4-hour chart the AUD/JPY cross currency pair is still moving above the WMA (30 Shift 2) which also has a slope that is going upwards, but because

Arief Makmur 07:42 2025-05-14 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.