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"The Fed has been telling us for some time that they want to be data dependent, and the numbers are nothing to run up the flagpole."
- Conference Board (based on Reuters)
Pair's Outlook
Stronger US Dollar forced the yellow metal to plunge considerably on Tuesday. Sell-offs continued until the XAU/USD cross pierced through the dense demand zone around 1,210. Both 100-day SMA and monthly R1 were eliminated, meaning that attention will now turn to the near-term bearish scenario. A short-term failure to revive strength and return at least above 1,215 is expected to fuel bears for additional movements to the downside. The current target for them stays at 1,194 (monthly PP), with the possibility to bounce back from this mark in the medium-term.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased significantly this week, while the gap between them amounts to just four percentage points at the moment. The total share of bulls stays at 52% versus 48% for bears.
© Dukascopy Bank SA