Dukascopy - Analytics


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    Gold takes a shot at 200-day SMA

    © Dukascopy Bank SA
    "Weaker macro numbers out of the U.S. are also increasing the odds that the Fed's December move could have been an outlier, forced onto a central bank that basically had to move after promising to do so for much of the last year."
    - INTL FCStone (based on CNBC)

    Pair's Outlook
    The most significant moving average line on a 200-day time frame was touched in early November last time. Now gold has an opportunity to overcome this crucial resistance again. However, the presence of two-month uptrend, weekly R1 and upper Bollinger band makes the bullish task tougher. Downside risks are substantial, while the bears are aiming at retaking the support area near 1,100 (100/20-day SMAs; monthly PP; weekly S1; Oct 2015 low). In the meantime, a success at the mentioned closest resistance could lead to more gold purchases with a target at 1,149 (2015 downtrend).

    Traders' Sentiment
    Slightly less than 58% of all SWFX traders are now betting on price gains for the precious metal. This compares to only a 54% share of the longs yesterday, meaning the gap from the bears has widened to 16 percentage points.

    © Dukascopy Bank SA

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