© Dukascopy Bank SA
"With the removal of the 'Greek irritant' as a bullish issue, gold will likely revert to trading more on its own fundamentals, which at this stage, do not look that inspiring."
- INTL FCStone (based on CNBC)
Pair's Outlook
It seems that the XAU/USD cross experiences no major issues, while crossing a dense cluster of technical levels in time when the impetus appears. Yesterday, gold was sold off from 1,200 down to 1,185, and the metal managed to breach the monthly and weekly PP, 100 and 55-day SMAs. The nearest important demand in placed as close as 1,180 (2013 low, weekly S1), but bears are mainly targeting the June low at 1,162; therefore an attempt to depreciate further is likely to occur in the short-term, while any rebound should be capped by the June 10 high at 1,192.
Traders' Sentiment
The total share of long open trades at the SWFX market remains solid at 62%, while bears are in the minority with 38% of all trades. From yesterday, the gap between the former and the latter decreased marginally by just two percentage points.
© Dukascopy Bank SA