© Dukascopy Bank SA
– based on Reuters
Pair's Outlook
The yellow metal edged higher on Wednesday morning and reached a resistance cluster located around the level of 1,275. However, the markets are still amazed at the drastic fall, which occurred in the second half of Tuesday's trading. The bullion fell to the level of 1,266.93 near the end of the day's trading session. This fall is the result of a breakout, which formed in the recent months and could have been seen fully on September 26. Although, it was expected that the breakout will be to the upside and consistent with the long term rising wedge pattern.
Traders' Sentiment
Traders remain bullish on the metal as, 56% of open positions are long. However, set up orders no longer are largely bullish, as 52% of pending commands are to sell the metal.
© Dukascopy Bank SA