‘The market seemed to take the notification of the article 50 in the UK relatively smoothly, but I suspect the worst is yet to come on that.’ – Daniel Hynes, ANZ (based on Reuters)
The yellow metal continued to trade between two clusters of significance on Thursday morning, as it had done for the past two trading sessions. From the upside the bullion faces the first weekly resistance at 1,254.87, which is combined with the 200-day SMA at 1,257.79. From the downside the currency exchange rate is finding support in the 50.00% Fibonacci retracement level at the 1,248.96 mark and the already broken down-trend line, which remains significant at 1,246.78. It is highly likely that the bullion will continue the surge in the near future.
Traders remain neutral bearish, as 51% of open positions are short on Thursday. Meanwhile, 63% of trader set up orders are to buy the metal.