In general, the outcomes of yesterday’s Fed meeting could be described as moderate. One of the most unexpected developments was that US central bank governors Michelle Bowman and Christopher Waller, who had previously argued for a rate cut in July, joined other officials in voting this time. As a result, borrowing costs were reduced by only 25 basis points, with further steps remaining uncertain due to the regulator’s cautious stance. The scenario of a more aggressive rate cut did not materialize, but the market seems to have already priced this possibility in. Such a conclusion can be made by analyzing the US dollar’s behavior across different currency pairs. The greenback found support following the Fed’s decision. Meanwhile, gold is now forming an inverse head and shoulders pattern on the four-hour timeframe (H4) with the neckline at $3,620. If this formation is completed, a break below its bottom will follow, paving the way for a further decline to $3,580.
The overall recommendation is to sell gold if the head and shoulders pattern completes. Take profit at $3,580. Place Stop Loss at $3,680.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
