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"The fact that it [Chinese PMI] is lower than expectations, that might just give gold a bit of a safe-haven."
- Fat Prophets (based on Bloomberg)
Pair's Outlook
Two formidable technical areas are highly likely to put both upside and downside pressure on gold at the same time. Support is located around 1,100/05, represented by 100/20-day SMA, monthly PP, weekly S1 and Oct/Sep 2015 lows. Any possible slide below here will see sentiment deteriorating, and new targets will be set at 1,080 (55-day SMA/monthly S1). The first and foremost supply is represented by 200-day SMA and upper Bollinger band at 1,129/30. They are immediately followed by weekly R1, and a spike above them will proclaim a break-out from the bullish pattern.
Traders' Sentiment
Traders in the SWFX market are holding a slight majority of bullish open positions, namely 54% of them. It means that sentiment has been largely flat over the last 72 hours, which puts the gap between the bulls and bears at eight percentage point so far.
© Dukascopy Bank SA