Rise and fall

During the European session gold price skyrocketed and tested the $1280 area. It is quite explicable as the precious metal is moving opposite to the US dollar, that was seen weaker today because of a set of disappointing data out of the USA right before the FOMC. 

After Fed’s rate decision bears took back the control and dragged rates down and the current market price is $1257. So after marking five-day high, XAU/USD lost %0.65 or around $8 for the day. 

On the four hour time-frame the price surpassed to below the 20-day and 100-day SMAs and meanwhile remained above the flat 200-day SMA, which is acting as a strong support, currently being at $1255. 

RSI moved today slightly above the mid-line but later had sharply turned to south. Stochastic had retreated from the extreme overbought territory and is displaying strong bearish momentum. 

First support is located at $1255 and next is seen at $1240.Looking to the upside resistance is seen at $1269 (100-day SMA) higher at $1280 (the intraday high).