Dukascopy - Analytics


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    Gold reaches bearish pattern's upper boundary again

    © Dukascopy Bank SA
    "We have to suspect that as U.S. macro data starts to deteriorate, the dollar will likely continue to weaken from here, providing further upside to impetus for gold."
    - INTL FCStone (based on CNBC)

    Pair's Outlook
    As expected the precious metal surged above the 100-day SMA and 61.8% Fibonacci retracement of the Aug-Sep downtrend on Tuesday. It was actively supported by the 50% retracement and was therefore able to register substantial positive change in value. While bulls are set to aim at the monthly R1 (1,147) next, the cross has again touched the upper boundary of the channel down pattern. Thus, bearish pressure is likely to increase in the short term, while daily technical indicators changed from bullish to neutral in the past 24 hours. However, a close above 1,156 (Sep 24 high) would reopen the 1,170 mark for bulls.

    Traders' Sentiment
    After gains at the end of the previous trading week, the number of SWFX long open positions has recently resumed declining. However, during the past 24 hours their share has been fairly stable at 52%.  

    © Dukascopy Bank SA

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