‘Given the absence of significant data this week, the market’s attention may be squarely on politics.’ – HSBC (based on Reuters)
On Wednesday morning the yellow metal fluctuated below the weekly R1, which is located at 1,233.81. The fluctuations are very similar to what occurred during Tuesday’s trading session. However, there are differences, which give clues regarding the pair’s future movements. First of all, the bullion’s price was less volatile to the downside, which indicates that there is a minor support level prepping it up. Although, the resistance cluster above the commodity price is now being reinforced by the upper Bollinger band. These factors combined formulate a forecast of a flat session for the metal.
Traders remain neutral regarding the bullion, as 50% of open positions are long. Meanwhile, 57% of trader set up orders are to buy the metal.