Our downtrend channel has broken after two weeks; Fed announcement and the meet point with the 61.8% Fibonacci line (79.93) were the trigger for this break, the Index even cross the important 50% Fibonacci line (80.23) and the 38.2% line (80.52). From this morning levels around 80.5 and for more reliable move I will expect the index to recheck those Fibonacci lines from the upside before any move up.
Mix picture on the daily chart, on the one hand the uptrend channel still holding the market but on the other hand it start looks like a double top formation. The pair still trades in our uptrend channel and above all the important moving averages so we should think about targets to the upside like 1.3800 and 1.3983. However, it almost looks like a perfect double top and we need conformation from the price action to this assumption and we will get it if the price trades below the channel and the support line at 1.3622.
On the daily chart we can find “Head and shoulders” formation with the head top at 1434, two shoulders top around 1370 and neck line at 1272. The breakdown of this “neck line” triggered the current downtrend with long term target at 1111. However forms technical view we also have a crucial support line at 1200 so the next few trading sessions (even today) should set the tone, a break of the 1200 line and the gold will go much lower if it holds I will expect a move back to the “neck line”.