Gold closes above downtrend, exposes 1,084

The bullion spent another trading session in a positive way, as the bulls were strong enough to push prices above 1,075 yesterday. As a result, the two-month downtrend line was crossed and now we are focusing on the next resistance area at 1,084. This one is considered to be much more important, as we are dealing with 55-day SMA, upper Bollinger band, weekly R2 and monthly R1. To violate this supply zone, the traders are likely to require a boost from fundamentals. Today the US ADP employment is due, and a negative surprise will provide gold with an opportunity to rally.  

Following a loss of two percentage points on Tuesday, the total number of SWFX bullish positions stabilised near 54% by Wednesday morning.