Decent downside risks for Gold

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Money is moving to bullion as investors seek an alternative after the Yuan sustained its worst annual loss against the dollar in more than two decades."  
– Luzi Ann Javier (Based on Bloomberg) 

Pair's Outlook 
Gold gained some pips to the UD Dollar, following a volatile session the day before, when it posted what appears to be a high wave candle, which expresses confusion in the market. The pair is most likely to be targeting 1,211.87/1,213.17 – an area which corresponds to the bottom broken trend-line of the junior channel and the weekly R1, where the gains will be cut for today's session. There is still risk on the downside as well, due to the fact that a senior broken channel might also require consolidation. In a falling case scenario, 1,184.64/1,182.34 is most likely to make bulls take over after 1,191.73 is tested. 

Traders' Sentiment 
Traders remain slightly bullish regarding the bullion, as 52% of open SWFX trader positions are long on Friday. Meanwhile, 61% of trader set up orders are to buy the metal.
© Dukascopy Bank SA

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