© Dukascopy Bank SA
"Gold will consolidate in the $1,065 to $1,085 range ahead of the Fed meeting."
- Lee Cheong Gold Dealers (based on CNBC)
Pair's Outlook
Persistent instability of the Greenback's value and positive Chinese inflation numbers are creating demand for gold on Wednesday, following a rise we have already observed on Tuesday. Technical support is provided by July low at 1,070 and weekly pivot point at 1,073. The nearest resistance is 20-day SMA at 1,078. A surge above this level will expose the monthly pivot point at 1,086, which acted as an impassable supply last Friday. Meantime, trading volume slumped to the lowest level in four days, paving the way toward lighter volatility in the near term.
Traders' Sentiment
Following a short-living stabilization at 64% on Tuesday, the total number of bulls resumed falling down on Wednesday and reached 62%. It proclaims that bears are benefitting from gold's overbought status and are entering the SWFX market with fresh open positions.
© Dukascopy Bank SA