Senior Trader Daily Update 22 September 2017

Good morning everyone and happy Friday!
 
XAU/USD & XAG/USD remained under pressure as they continued to feel blowback from Wednesday’s FOMC monetary policy announcement in which the US central bank signalled its intentions on interest rates and tackling its $4.5 trillion balance sheet.
 
Paradoxically, Greenback strength / AUD weakness meant that gold and silver in AUD terms closed higher on the day.
 
Technically, XAU/AUD has bounced strongly away from support around the AUD 1612.50 level (see support line on attached chart). If XAU/AUD can register a close near today’s high, then the probability of an interim low having been made is high and investors should be on the lookout for a potential ‘bear trap’ being sprung.
 
XAU/USD posted another lower high and lower low but robust support is likely to be seen at the conjunction of the 55 Day moving average and the 50% Fibonacci retracement (of the USD 1204.50 (July 10th) to 1357.50 (Sept 8th) move) presently located at USD 1281/1283. The 61.8% Fibonacci retracement at 1263 and the 200 Day moving average at USD 1245.50 also present as key downside support levels. Significant interest around the USD 1300 strike in the CME’s October contract ahead of next week’s option expiration should ensure that XAU/USD doesn’t stray too far from the psychological ‘big figure’ at least until the expiration passes.
 
Good luck and have a great weekend.
 
Regards,
Andre