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Gold violates 55/100-day SMAs, sets eye on 1,117

© Dukascopy Bank SA
"We remain negative on the overall precious group over the short-term ... The combination of a stronger dollar, soaring U.S. equity markets, ETF liquidation, a jittery Fed, along with a worsening technical picture will all combine to keep the complex on the defensive for a little while longer."
- INTL FCStone (based on WBP Online)

Pair's Outlook
As it was expected, the second attempt to penetrate both 55 and 100-day SMAs used to be quite successful. A decline was prolonged down to 1,133 by Monday evening, even though gold has somewhat bounced back on Tuesday. In case bears hold the price below 1,137 through the next 24 hours, we are going to confirm our bearish expectations for the bullion. Main focus is going to switch to the three-month uptrend at 1,117. In the meantime, on the way down both weekly S1 and lower Bollinger band will have to be breached at 1,126 and 1,122, respectively.

Traders' Sentiment
Yesterday seven percent of all SWFX open positions changed hands from bulls to bears. The portion of longs has therefore dipped from 54% to 47%.  

© Dukascopy Bank SA


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