Dukascopy - Analytics

    Dukascopy

    472.75 6.25/10
    83% of positive reviews
    Real

    XAU/USD capped by dense supply area at $1,190

    © Dukascopy Bank SA
    "From a strictly fundamental viewpoint, gold is trading approximately the way it should, slightly jumpy and range-bound."
    - TheGoldForecast.com (based on MarketWatch)

    Pair's Outlook
    On Wednesday, the bullion declined once again and pierced through a considerable support lines' area around $1,190, then represented by the weekly PP and 23.6% Fibo retracement. At the moment these lines, accompanied by the new monthly PP, 20 and 55-day SMAs are acting as a very strong supply zone, which may push Gold further to the downside. In the near term the yellow metal is likely to try to return back up to $1,200, but we tend to believe technical indicators, which are now giving bearish signals on all time-frames.

    Traders' Sentiment
    Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a majority with 66% of all trades. From December 31, however, bulls have decreased their advantage by seven percentage points, reaching the worst sentiment in 13 trading days.
    © Dukascopy Bank SA

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