© Dukascopy Bank SA
"Gold ground higher, continuing to trade in a tight range. The weaker dollar has supported demand, but investors remain wary heading into the central bank meetings."
- ANZ (based on CNBC)
Pair's Outlook
By the end of Tuesday the volume of trading has risen to a three-day peak, which supported the bulls in attacking the nearest resistance at 1,241/43. By creating the long lower shadow, gold closed near the upper bound of the mentioned supply where the weekly pivot is resting at the moment. Additionally backed by the 55-day SMA at 1,236.91 and March-April uptrend at 1,235, the bullion has accumulated a well-positioned upside potential. With strong enough momentum the base scenario would allow for an advance up to the next resistance zone created by the weekly R1, Bollinger band and February peak at 1,258/63.
Traders' Sentiment
58% of all SWFX traders (60% yesterday) assume gold is going to be a subject to losses in the foreseeable future, as this is the percentage of short positions opened at the moment.
© Dukascopy Bank SA