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"This week we think that some form of profit taking may occur after Friday's heady gains post-U.S. nonfarm payrolls."
- Phillip Futures (based on CNBC)
Pair's Outlook
Following massive price changes on Friday, the yellow metal was broadly unchanged in the beginning of a new working week. Gold has therefore secured the positive future outlook, by stabilizing above the 50% Fibonacci retracement of the Aug-Sep downtrend. While this level is reinforced by the 2014 low and weekly PP at 1,131/30, this fact increases the probability of XAU/USD's bullish scenario even more. The nearest resistance to meet is the 61.8% retracement and 100-day SMA at 1,142/43, followed by the monthly R1 at 1,147. Meanwhile, daily indicators are also pointing to the upside at the moment.
Traders' Sentiment
After considerable gains at the end of the previous trading week, the number of long open positions has recently resumed declining. During the past 24 hours their share dipped from 53% to 52%.
© Dukascopy Bank SA