XAU/USD to test resistance at 1,194

Gold traded on the upside during the trading session on Tuesday. Positive momentum was provided by the weekly PP at 1,187, even though the precious metal faced a dense cluster of resistances ahead of it. Despite that, there were several attempts to violate this area at 1,194, which is composed of 55-day SMA and monthly PP. Today XAU/USD is highly likely to try and push through this zone. In case bulls succeed, it will give them an opportunity to raise the price up to 100-day SMA (1,210) in the near-term. Otherwise, a bounce-back may extend as low as 2013 low at 1,180.

Advantage of bulls over bears at the SWFX market is considerable at the moment, as the former are dominating by keeping 73% of all opened positions, down one percentage point since yesterday.