Gold Price Analysis: XAU/USD bulls in charge aheda of the Fed

• The gold market is waiting for the Federal Reserve this week.
• Bulls are taking charge but have been resisted at a critical 4-hour resistance. 

As per the prior analysis, Chart of the Week: Gold price analysis, a bearish bias persists, the bulls are indeed in play to start the week ahead of the Federal Reserve as the main highlight. 

Prior analysis, daily chart

From a daily perspective, the price has failed at the downside, and although it penetrated some of the support, the bulls have stepped in and the price has closed at the 61.8% Fibo.

This puts the bulls in charge to open the week. There are prospects of an advance through daily resistance to penetrate deeper into the monthly resistance. 

However, failures at daily resistance or a break of support will underscore the bearish bias for the forthcoming days and weeks ahead.

Live market

As illustrated, the price action has been in favour of the bulls to start the week ahead of what is expected to be a very imp[ortant event for the US dollar when the Federal Open Market Committee meeting on Wednesday. 

There is therefore scope for a trapped scenario until the outcome of the meeting.

Meanwhile, as per the prior analysis, the bulls have tested the projected resistance as follows:

Prior analysis, 4-hour chart

There is scope for a deeper test to higher resistance and the 21 EMA confluence with the 50% mean reversion target of the move for the open. 

Live market, 4-hour chart

As illustrated, the price has indeed moved up to test the resistance and has been rejected.

This leaves scope for a downside continuation if support is broken.

With that being said, as already mentioned, with the Fed on the horizon, there may not be too much activity or moves from the bears until the event.