© Dukascopy Bank SA
- AFEX (based on CNBC)
Pair's Outlook
Gold spiked more than 100 dollars from the 100-day SMA at 1,250 amid the news from the UK, but the rally appears to have been stopped by the rising resistance trend-line. The trend-line has been able to contain rallies since last year's August, and is seen capable of halting today's advancement as well. Accordingly, we expect the price to close beneath 1,330 and then to retreat to a potentially strong demand area circa 1,307, where the 2015 highs is now joined by the 50% retracement of today's surge.
Traders' Sentiment
Regardless of the massive appreciation of gold, positioning in the SWFX market remains perfectly stable—42% of traders are bulls and 58% are bears. The percentage of buy orders, however, did jump from 62 to 77%.
© Dukascopy Bank SA