XAUUSD
After the surprise price crash on gold at the market open on Sunday 8th August, the price has recovered dramatically towards what we believe to be the 618 FIB of the 1st June high at 1916.62. Namely 1825.34.
Now during the week of 23rd August, all eyes are on Jackson Hole to get hints about the nature of expected tapering for the FED's $120bn/month in asset purchases. It is our expectation that although there will not be any surprises, the FED will reinforce that tapering is on the way by the end of this year.
Our plan is to watch closely as the price moves towards 1825.34 and look for signs of exhaustion of the recent bull move. Should the price falter here, we are expecting a big downward correction towards 1750. We will look for continuation trades back towards 1677 if the price cannot hold 1750.