XAUUSD Outlook: Bulls Struggle At 100SMA, FOMC Minutes Eyed For Fresh Signal

Technical analysis of Forex market

Spot Gold holds positive tone in early Wednesday, despite firmer dollar and reduced safe-haven demand, in renewed attempts through falling 100SMA ($1226). Upside attempts in past two days failed to sustain probes above 100SMA, as double daily candle with long upper shadows signaled strong rejections. Overbought slow stochastic adds to risk of reversal while strong momentum and daily MA’s (10, 20, 30, 55SMA) in bullish setup continue to support. Minutes of FOMC Sep meeting are eyed for fresh signals as hawkish tone from the central bank would signal rate hike in Dec and probably more aggressive approach in early 2019, which would boost the greenback and bring yellow metal under stronger pressure. Break above 100SMA would open strong barriers at $1234/38 (weekly 200SMA / Fibo 38.2% of $1365/$1160), break of which would generate strong bullish signal. On the downside, initial support lays at $1220 (session low), followed by former high of 28 Aug at $1214 and top of thick daily cloud at $1213, break of which will be bearish signal.

Res: 1230, 1233, 1234, 1238
Sup: 1220, 1214, 1213, 1209