Base case: while above the 200-day SMA near 0.6990, spot should maintain the constructive stance. Of note is that the pair is navigating close to the overbought zone (daily RSI flirting with 69), which has the potential to trigger a “technical” correction.
Gold has kicked off a new week on a bearish footing, resuming the previous downside while battling the $4,400 level amid a United States (US) holiday-led light trading.
Joy can’t last forever, can it?
The week in one sentence: Speculative positioning became more defensive in the week ending September 1. Yen short positioning recorded the largest deterioration, while Gold length also retreated.
Joy can’t last forever, can it?
A dreadful week saw the US Dollar (USD) navigate choppy waters, going from the area of three-week tops to multi-day lows in hours and eventually leaving the scales tilted toward the negative side. Who to blame? The bond market? The MoF-BoJ duo? Unabated geopolitical tensions? The Fed?