In line with expectations, the falling 55-hour SMA did allow the bullion to recover against buck. As a result, the rate was forced to find support at the 50% Fibonacci retracement level located at 1,240.30. In early hours of this trading session bulls made another attempt to inch the price of yellow metal higher. But this endeavour is expected to fail as well due to combined resistance barrier formed by the above 55-hour SMA and the monthly S2 at 1,246.74. Accordingly, the bearish momentum is likely to continue at least until the Fed meeting that will happen tomorrow.
An aggregate of technical indicators supports this scenario via sending sell signal for the rest of the day.
