FX.co ★ Gold 08.01.2019 - Comletion of the downward correction ABC?

Gold did trade lower after the FOMC statement yesterday but it found support at the price of $1.400 also round number, which is for me sign that there is potential for the upside.

Technical picture:

On the 4H time-frame I found that Gold might complete that downward correction (ABC down), which is strong sign that further upside is very likely to happen. The important swing low (resistance) at the price of $1.410 got penetrated, which added even more strength on the Gold.

Stochastic oscillator is showing oversold condition and the fresh up flip and can help the Gold to rally.

Important upward references:

$1.432 – Swing high prior to FOMC

$1.450 – Major swing high

Important downward references:

$1.400 – Round number and important support

$1.384 – Support cluster

My advice is to watch for buying opportunities with the first target at the price of $1.432.