FX.co ★ Gold moves higher after the FOMC meeting.

In our analysis yesterday we warned bears that the RSI was giving a third bullish divergence and the chances of a reversal had increased dramatically and the FOMC meeting today could be a very good justification for such a reversal to the upside.

Gold price is trading around $1,885. Price has started making higher highs and higher lows. Resistance at $1,920 remains untested yet. Bulls need to break above this level. Support is at the recent low of $1,860. As long as price is above $1,860, the upside potential is bigger than the downside. Price should continue higher towards $1,906 where we find the 38% Fibonacci retracement of the entire decline from $1,997.