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"All-in-all it there was a dovish tone to the release, with analysts likely to push back their expected timing of a rate hike."
- MKS Group (based on CNBC)
Pair's Outlook
Despite initial losses in the beginning of Wednesday, gold erased them by the end of the trading and even managed to bounce off the 2013 low at 1,180. Moreover, the post-FOMC reaction is in place on Thursday, and currently XAU/USD is testing the 20-day SMA at 1,186, while setting eyes on the next resistance at 1,192 (weekly R1). At the same time, the area between 1,192 and 1,206 is full of different technical levels; therefore, the bullion is likely to fail growing considerably without any major bullish impetus.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market has been flat during the past 24 hours, while 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