© Dukascopy Bank SA
"The Fed would be quite keen to continue monetary policy tightening, albeit only gradually over 2016, followed by a faster pace in the following years."
- Societe Generale (based on CNBC)
Pair's Outlook
The bullion ticked down in course of the trading session on Tuesday, after posting a confident rally on Friday and Monday. Yesterday's slump, however, was contained by the 20-day SMA at 1,072. Wednesday morning we are observing a marginal recovery up from the moving average. The key short-term supply is located at 1,080 (weekly R1), followed by a cluster of resistances at 1,086/89 (monthly PP, Bollinger band and current December highs). On the south side, some additional demand is still offered by the July low at 1,070.
Traders' Sentiment
Although the yellow metal decided to bounce back on Tuesday, the spread between the bullish and bearish positions continues to narrow down. The percentage of long trades amounts to 55% on Wednesday, down one percentage point from Tuesday morning.
© Dukascopy Bank SA