© Dukascopy Bank SA
- Marex Spectron (based on MarketWatch)
Pair's Outlook
Gold is about to touch August's high, which is strengthened by the weekly R1 and the Bollinger band. A close above this level will not imply a bullish outlook, mainly because of the supply zone around 1,180 dollars, where the weekly R2 joins forces with the monthly R2 and 200-day SMA. If the precious metal gains a foothold above this area, however, the next target may well be 1,230, namely the May high and the falling resistance from the weekly chart. In case of a strong sell-off in the nearest future the losses should be limited by 1,120 (monthly PP, 55-day SMA and up-trend), but we can also expect a small rebound from the 100-day SMA at 1,140.
Traders' Sentiment
The SWFX market remains divided. At the moment 51% of open positions are long and 49% are short.
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