© Dukascopy Bank SA
- Royal Bank of Scotland Group Plc (based on Bloomberg)
Pair's Outlook
Because of the hawkish FOMC statement yesterday, the price for gold is highly likely to stay bearish until we hit 2010 low. Neither the weekly S1 level nor the Bollinger band is considered to be capable of stopping the present sell-off. The negative bias is also confirmed by the technical indicators, especially in the daily and monthly time-frames. In case there is an unexpected rebound, perhaps due to disappointing US fundamentals or due to a sudden risk aversion, supply at 1,104/00 should prove to be strong enough to halt the gains and force the price to make a U-turn.
Traders' Sentiment
Despite the precious metal becoming cheaper, some of the bulls have left the market. Now 70% of open positions are long, while yesterday and the day before yesterday they took 72 and 75% of the market, respectively.
© Dukascopy Bank SA