Gold Technical Analysis: Recover early lost ground to 200-hour SMA/50% Fibo. confluence support, FOMC in focus

London (May 1)  The precious metal quickly reversed an early European session slide to $1278 area and is currently placed near the top end of its daily trading range ahead of the US macro data.

   •  The intraday dip once again managed to find decent support near a confluence region - comprising of 200-hour SMA and 50% Fibo. level of the $1266.50-$1288.75 recent up-move.

   •  The mentioned support might now act as a key pivotal point for the commodity's near-term trajectory as the market focus remains on today's key event risk - FOMC policy decision.

   •  Meanwhile, mixed technical indicators have also failed to support any firm directional bias and further collaborated towards holding back investors from placing any aggressive bets.

   •  Hence, it would be prudent to wait for a strong follow-through buying or a sustained break below the said horizontal support before positioning for the next leg of a directional move.

FXstreet