Today is a big day for the Fed, and markets will most probably trade sideways as volatility is expected to rise after the FOMC announcement. A gold price pattern is not very hopeful for bulls but I believe the downside is also limited to just to a marginal new low towards $1,020.
Blue lines - bearish channel
Gold price is trading inside a bearish channel and below the Ichimoku cloud. Resistance is seen at $1,070 and at $1,080. Support is found at $1,057 and at $1,046. If resistance is broken, I expect the price to move towards at least $1,100-20. If support is broken, I would expect the price to fall towards $1,020-30.
Blue lines - price projection
Gold price is trading close to the lower wedge boundaries in the weekly chart. Strong weekly resistance is seen at $1,080. So, a weekly close above that area will open the way to a bounce towards $1,120-30. However, we should not rule out the possibility of a throwover final new low today if circumstances justify such a decline.
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