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Gold supported by ECB decision as trading volume spikes

© Dukascopy Bank SA
"Further dollar short-term weakness will support the precious complex. Support levels for gold are in the mid 1,040's and immediate resistance in the high 1,060's."
- MKS Group (based on CNBC)

Pair's Outlook
The precious metal hovered in positive direction on Thursday, especially pricing in the "hawkish easing" from the ECB, which sent the Dollar strongly lower in the market. In the past two weeks we have seen more green candles appearing in the daily chart. It proclaims that an active phase of losses has probably come to an end, as markets are refocusing from the ECB to the Fed. We expect the bullion to trade predominantly sideways, unless either July low at 1,070 or 2010 low at 1,044 is breached. The mid-term projection, however, will continue carrying the bearish bias.

Traders' Sentiment
After losing four percentage points in the past 24 hours, the portion of bullish positions dipped down to 67% in the SWFX market. 

© Dukascopy Bank SA


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