© Dukascopy Bank SA
"We suspect her [Yellen's] remarks will come across as unusually dovish, allowing the dollar to resume its descent and giving commodity markets a bit of a lift late in the day on Wednesday."
- INTL FCStone (based on CNBC)
Pair's Outlook
The seven-day long rally of the bullion was ultimately limited by the 1,191/93 resistance area, where gold met the October high of the previous year and weekly R1. We are closely watching this supply, because any market turmoil may end up with violation of these levels. In this case, the long traders will immediately expose the next resistance at 1,207/13 represented by the upper Bollinger band, monthly R3 and weekly R2. Gold will have a good chance to commence a down-leg from here, even though there are few fundamental signals the current growth phase is over.
Traders' Sentiment
After falling below the 50% threshold for the first time in more than a year, the share of bullish market participants on the SWFX market remains at 43%.
© Dukascopy Bank SA