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"After breaking through trend line support around $1,119 overnight, the next downside target for gold currently sits around $1,105."
- MKS Group (based on CNBC)
Pair's Outlook
Bears spent the Tuesday's trading session by actively selling the yellow metal, just before the bunch of US statistics is published later on Wednesday. A perfect trade pushed XAU/USD down to the four-month major trend-line, where the daily closing level was touched at 1,117. Optimistic US fundamentals may result in breaching of this crucial support, which will then expose the Oct low at 1,104 and Sep low at 1,098. In case of a rebound, bulls should target the yesterday's open at 1,133 and keep in mind 100/55-day SMAs at 1,137/39.
Traders' Sentiment
Sentiment with respect to US Dollar worsened in the past 24 hours of trading, while the share of long open positions on gold rose by three percentage points. At the moment both bulls and bears are keeping the equal number of current trades in the SWFX market.
© Dukascopy Bank SA