- SWFX traders are 55% bearish
- 56.54% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,286.48
- Upcoming Events: US Core Durable Goods Orders; Fed Chair Yellen's Speech; ECB President Draghi's Speech
On Friday the bullion remained in the expectations of the Jackson Hole symposium. The bullion had revealed late in the Thursday's trading session that it is trading in a symmetrical triangle pattern. The reason for that was the building up pressure before the speeches of the heads of the central banks.
The National Association of Realtors reported that the US existing home sales dropped 1.3% to a seasonally adjusted yearly rate of 5.44M in July, missing expectations for an increase to 5.55M units. A decrease was caused by the lack of available properties for sale, which limited the housing market recovery and forced price surge to notable outpace wage growth, while overall demand for housing remained strong.
US Durable Goods and Jackson Hole
After a rather quiet week for fundamental swing traders, this Friday is set to dictate the markets. However, the most important fundamental events will take the form of a speech, and there is no concrete candle to speculate on.
Although, at 12:30 GMT, before the speeches in the US, the US Core Durable Goods Orders and Durable Goods Orders data sets will be published. This data release will be covered on the Dukascopy live webinar platform, as a part of the Friday's research webinar.
The most important thing to look at on Friday will be the speeches of the heads of the central bankers in Jackson Hole, where a symposium of bankers will take place. At 16:00 GMT Janet Yellen is set to give a speech. Afterwards, at 19:00 GMT ECB President Mario Draghi will give a speech.
XAU/USD concentrates in symmetrical triangle
The way the bullion is moving against the buck, basically, repeats the path of the Euro, as majority of traders prepare for a speech that will be delivered by Janet Yellen at 16:00 GMT. Namely, the pair has entered into a short-term symmetrical triangle that continued narrowing down in parallel to the increasing anxiety related to the upcoming fundamental event.
Hourly Chart
On the daily chart one can observe that the commodity price might continue trading below the monthly R1 until it reaches the lower trend line of the dominant ascending channel pattern, which is consistent with the end point of the triangle pattern.If the ascending channel pattern's lower trend line holds ground by providing support, the metal will be squeezed into a new short term ascending triangle pattern. The channel's support would become the triangle's support. Meanwhile, the monthly R1 would become the resistance of the triangle.
Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy are clearly bearish, as 55% of open positions are short. Meanwhile, 56.54% of trader set up pending commands are to buy the metal.
OANDA Gold traders are almost neutral, as open positions are 52.22% short. In addition, SAXO bank traders also remain close to being neutral, as 51.25% of open positions are short.