‘The Fed concluded its two-day meeting with a bullish statement that downplayed weak first-quarter economic growth.’ – Marcy Nicholson and Zandi Shabalala, Reuters
Pair’s Outlook
As the FOMC published their statement, the yellow metal’s price declined and passed two significant support clusters. The fall stopped exactly at the lower trend line of the long term ascending channel pattern. Initially this move was expected to occur later. On Thursday morning the commodity price was squeezed in between the trend line and a resistance cluster just above the 1,240 level. However, it is most likely that the resistance cluster will be broken and the metal will begin to approach the 1,250 mark.
Traders’ Sentiment
SWFX market sentiment is almost neutral, as 51% of open positions are short. However, 73% of trader set up orders are to buy the metal.
