Wait For GOLD to Retrace to 1270.00 Level Before Going LONG!

Its no doubt that Gold is bullish in a longer term view, however for those of you who prefer a greater risk to reward ratio it might be favorable to wait for the yellow metal to retrace towards the 1270.00 level before executing a LONG trade. Have a look at the main chart, where the steep upward channel has been broken and pierced the daily 50 EMA and currently its on the path to form a H & S pattern on daily TF. If broken, the yellow metal could test the ascending long term trendline beneath and potentially offer a chance to go LONG with a greater RR chance.

Fundamentally speaking, the FOMC meeting scheduled tomorrow will decide the fate of yellow metal in a short term view. A dovish FOMC update has already been priced in by the markets and a particular point to focus on tomorrow's meeting will be the DOT plot and unwinding of the FED balance sheet. Many analyst still feel the FED will hike rates one more time in JUNE and currently the market has priced in 0 rates hikes this year instead of 2 as predicted at the end of last year. Therefore it remains to be seen what happens all in all for you patient GOLD BULLS its advisable to wait for the price to retrace before going LONG for a chunky risk to reward ratio. cheers

This just represents my analysis for this pair and its not a signal of any type. although i am already SHORT on the yellow metal, shall the LONG chance arrive i will post the details of entry in a new thread.