© Dukascopy Bank SA
"If gold cannot push convincingly higher soon, recent longs may become disenchanted and liquidate. Although we are price positive long term, in the near term, this could knock gold back below $1,150/oz quite rapidly."
- HSBC (based on CNBC)
Pair's Outlook
The yellow metal advanced for the first time in four days on Tuesday, but gains did not exceed even the closest resistance represented by the weekly pivot point at 1,167. However, the rally seems to be continuing on Wednesday, just before the FOMC makes an interest rate decision later in the day. In case both Aug high and 200-day SMA are penetrated, the focus will switch to the next supply at 1,177 (weekly R1). Markets are closely watching the Fed event, and language the policymakers are using is the most important for them. Daily technicals are also bullish as they support the weaker Dollar at the moment.
Traders' Sentiment
The share of bulls is completely flat at 52% already for six working days, meaning that their advantage still remains very negligible right now.
© Dukascopy Bank SA