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Gold Extends Bullish Breakout After the Fed Decision to Hold

Today, we saw the USD slide across the board after the Fed announced that it would hold its federal funds rate between 0% and 0.25%. It is widely believed that the FOMC is planning to raise rates in 2016. This was not a big surprise, but still a disappointment to many who still saw a chance that the FOMC would pull the trigger. 

Gold priced in USD broke above a falling trendline during the 9/16 session but stalled ahead of the FOMC decision. Afterwards, we can say that the bullish breakout has been confirmed.

Gold (XAU/USD) 4H chart 9/17
(click to enlarge)

The next resistance will be around 1147-1150. Above that Gold has upside to 1170. There is further upside risk, but at this point, I would limit that bullish outlook to about 1180-1190, which would complete an ABC correction pattern in the daily chart. 

Gold (XAU/USD) Daily Chart 9/17
(Click to enlarge)

The 1180 area is actually key. It is a common support between April and June, and is where the 200-day simple moving average resides.