Gold Technical Analysis: metal sees descending broadening wedge breakout ahead of Fed

Gold is looking north ahead of the FOMC rate decision. The US central bank is seen raising rates by 25 basis points tomorrow. More importantly, the markets believe that the Fed will adopt a wait-and-see approach for 2019.

The rate pause, if confirmed, would bolster the already bullish setup, as indicated by the descending broadening wedge breakout, seen in the chart below.

4-hour chart

• As seen above, the pair bounced off strongly from the ascending (bullish) 100-candle moving average (MA) yesterday and cleared the wedge hurdle earlier today. Moreover, the wedge breakout has revived the rally from the Nov. 28 low of $1,211.
• So, it seems safe to say that the path of least resistance is to the higher side. The immediate hurdle is located at $1,257 - which is the 200-day MA hurdle.
• The bullish setup, however, would fail if the Fed sounds less dovish-than-expected, sending the US dollar higher across the board.

Trend: Bullish