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"Some form of consolidation is expected to occur as Asian traders close out positions ahead of the long Chinese New Year holidays."
- Phillip Futures (based on CNBC)
Pair's Outlook
Even though on Monday the yellow metal succeeded in staying above a strong resistance area at 1,230, on Tuesday it has momentarily erased all gains of two previous days. Currently, Gold is trading around the mentioned zone of important levels (38.2% Fibo, weekly PP). Judging from technical indicators on a daily time-frame, bearish pressure should persist in the near term, and in course of today's trading session the metal is likely to decline down to 1,215, the closest support line reinforced by 100-day SMA and weekly S1.
Traders' Sentiment
Sentiment towards the precious metal is remaining strongly optimistic among SWFX traders, while the total share of long opened positions decreased marginally from Monday to hit the 69% mark today, down three percentage points.
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