XAUUSD – Supported by 50 SMA

Taking a look at the daily chart, gold is currently trading above 50 with RSI. Price-action is also supported by the 50 SMA along with other technical support levels causing a support confluence zone.

Should price-action break below the 50 SMA, I would expect RSI to follow suit and drop below 50. That would indicate for me that the bullish momentum is fading and further downside would be likely.

As of writing this article, I’m neither long nor short as we have a major central bank meeting this Wednesday known as the FOMC. Trading gold or any asset against the US Dollar might be tough as it’s hard to predict the outcome of this upcoming interest rate decision. Most of price-action will depend on the comments in the press conference following the interest rate decision.