© Dukascopy Bank SA
"People are fearful about currencies, so they've moving to the one currency they are confident in and that's gold."
- an independent investment manager (based on CNBC)
Pair's Outlook
Gold appreciated the most since December 2014 on Thursday, by becoming $60 more expensive in just 24 hours of trading. Only the third resistance managed to contain the rally, while monthly R3/monthly R2 (1,209/13) and May 2015 high (1,232) were both easily penetrated. Trading volume is the greatest since March 2011, while Bollinger bands indicate volatility is ultra-high for the moment. Daily RSI is assuming gold is overbought, thus making a correction back below May high more likely. On the side of bulls, a spike beyond weekly R3 (1,252) should expose the 2015 high at 1,307.
Traders' Sentiment
The bullish-bearish distribution has stalled over the last four days at 43-57%, thus maintaining the biggest advantage for the bears in more than a year.
© Dukascopy Bank SA