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"Heading closer to this weeks' FOMC meeting, the $1,170 to $1,195 range is still in play."
- MKS Group (based on CNBC)
Pair's Outlook
By receiving reliable support from the 2013 low and weekly PP at 1,180 the bullion managed to accumulate daily gains on Monday, even though it firstly attempted to decline as low as 1,173. In case the metal consolidates well above the current trading levels, it will be in a position to jump up to 1,195 (55-day SMA) in the near-term. However, XAU/USD will meet a considerable resistance there, which is composed of the 100-day SMA and monthly PP around 1,197. Therefore, any medium-term gains are unlikely and the risk of a downside movement has not been eliminated yet.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased by two percentage points during the past 24 hours, but the total share of long opened positions (71%) remains solid and bears are still in the well-pronounced minority with 29% of all trades.
© Dukascopy Bank SA