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    Gold is at risk of correction from monthly R3

    © Dukascopy Bank SA
    "A lot of investors weren't buying the idea that there were going to be four rate hikes in 2016, and this certainly adds weight to that idea...it gave gold a boost."
    - OptionSellers.com (based on Wall Street Journal)

    Pair's Outlook
    Gold booked another trading session of gains on Wednesday, after the Fed statement indicated lower probability of a rate hike in March. XAU/USD reached last monthly resistance (monthly R3) at 1,127. However, it failed to touch 200-day SMA slightly more from the upside. Asian session suggests a correction within the rising wedge pattern. This would allow for a selloff down to 1,085 in the medium-term. Initial bearish target for the next 24 hours is 100-day SMA at 1,104, which is guarded by weekly R1 and monthly R2 at 1,110/07. Nonetheless, daily technical indicators are calm and maintain mixed outlook.  

    Traders' Sentiment
    With 53%, the bullish SWFX market share slumped to the lowest level in three months.

    © Dukascopy Bank SA

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