XAU/USD tests 200-hour SMA

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 52% 53% -1.92%
Shorts 48% 47% 2.08%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Neutral Sell Sell
Alligator (13; 8; 5) Sell Sell Buy
SAR (0.02; 0.2) Buy Sell Buy
Aggregate

In line with expectations, until release of the US macroeconomic data the pair was moving relatively steady.  

However, as soon as markets found out that one the leading indicators, the Consumer Confidence Index, substantially exceed expectations the rate plunged to the 1,269.37 level. Nevertheless, the upcoming FOMC meeting as well as employment data release do not allow reinforcing this success. 

On the other hand, in order to break to top the pair still needs to bypass the weekly PP, the upper boundary of a descending channel and, most importantly, the 200-hour SMA. 

Previous failed attempts suggest that until the first release these barriers are likely to constrain active rise of the yellow metal's price. In case of positive news, the pair is expected to repeat previous Thursday's downfall and reach the weekly S1 at 1.264.23.

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