XAUUSD - KOG REPORT UPDATE:

End of day update from us here at KOG:

What a move a Gold today, not only a fantastic short from the 1930-35 level straight into our identified target giving a level to level, point to point move but then the TAP AND BOUNCE giving the long trade from the trendline support back up to correct the move. We mentioned this morning that the MA's were above on both the hourly and the 4H chart so it was likely after the move to the downside the market will want to go back towards the mean in preparation for FOMC tomorrow. It's been a fantastic week so far but now its time to take your foot off the peddle.

It's likely we'll see the typical pre-event price action now where the tight range is possible and you'll see contradicting patterns and signals. We're back in the range having taken the liquidity from below and for this to take it from above it will need to clear the 1950 level, so trade with caution! We have indications of a swoop on its way this week and it's likely to get traders in the wrong way so best practice is to reduce your lot sizes and maintain a tight SL.

We'll be back tomorrow with our views for FOMC.

As always, trade safe.

KOG