The precious metal has finally broken under 1285.00 and left the 1300.00 zone behind. The FOMC and ECB meetings last week provided the catalyst for the breakout. Volatility diminished to for a Bearish Pennant Pattern in the lead into the meetings but FOMC pushed price out the top of the pattern before the reaction to the ECB resulted in a selloff from 1309.00. Technical’s are always reduced in importance around big central bank meetings and become secondary indicators until price settles down. The supporting blue trend line managed to arrest the decline last week but this is being tested today and yesterday. A drop to 1250.00 or even 1240.00 remains on the cards with support at 1265.25 on the way.


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