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XAU/USD indecisive before Fed meeting

© Dukascopy Bank SA
"Gold has come under pressure in recent weeks on U.S. dollar strength. We expect this to continue over the balance of the year as the market anticipates a rise in U.S. interest rates."
- Morgan Stanley (based on CNBC)

Pair's Outlook
The yellow metal was mainly flat last Friday, as markets are getting ready for this week's Federal Reserve meeting. This anticipation kept both bulls and bears at bay, and the bullion decided to move sideways. The present trading level is located just around the weekly PP at 1,180. The dense resistance area at 1,195 (55-day SMA, monthly PP) is unlikely to let bulls surpass this zone. On the other hand, sustainable support for gold should be created at 1,162, where the monthly S1 meets the Jun 5 low. 

Traders' Sentiment
Advantage of bulls over bears at the SWFX market was unchanged during the weekend time period, as the total share of long opened positions (73%) remains solid and bears are still in the well-pronounced minority with 27% of all trades.  

© Dukascopy Bank SA


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