- SWFX traders are 52% bearish
- 70% of pending orders in 700-pip range are set to SELL the gold
- Pair expectedly rebounds from 1,313.61
- Upcoming Events: US Core Durable Goods Orders, Pending Home Sales, Crude Oil Inventories
As it was expected, the pair found a resistance at 1,313.61 and, after reaching it, began to slip to the bottom. In general, now the buck is expected to try to drag the rate towards the bottom trend-line of a descending channel. On the other hand, three times in a row it failed to slip below the 1,290.93 level, which means that today another rebound might follow.
Janet Yellen sounded more hawkish, telling that the Fed is likely to raise rates so long as inflation growth keeps accelerating, and suggested the Central Bank to wary of making changes too gradually. Meanwhile, the Euro was influenced by uncertainties concerning the ECB monetary policy outlook, as Mr. Draghi and his colleagues failed to clarify the next moves on the QE tapering.
US Core Durable Goods Orders data release
Today will be marked by only one significant data release. Namely, at 12:30 GMT the US Census Bureau will publish the latest update on the Core Durable Goods Orders. This is event is expected to cause certain volatility in the markets, but not too high. This remark especially applies for the given pair. For those who are seeking a short-term profit, it would be better to turn your interest on announcement of the New Zealand's Official Cash Rate.
XAU/USD makes expected rebound
An area around the 1,313.61 mark indeed represented a sort of benchmark, which bullion traders used to try to restore previously lost positions. As this advance had a short-term effect, the pair expectedly fell back through the weekly and monthly PP as well as the 55- and 100-hour SMAs yesterday. On the one hand, such movement points out on formation of a minor descending channel. If this is true, then the rate is likely to continue to move to the bottom, trying to hit the weekly S2 at 1,283.66. A pressure from the above technical indicators would support such movement. On the other hand, there is a need to take into account that three times in a row the rate failed to pass through the 1,290.93 level.
Hourly Chart
The fact that the pair made a rebound a returned into a red zone enables us to slightly redraw boundaries of a junior descending channel. On the other hand, this correction does bring many value, as in the upcoming days that pair is likely to make another notable rebound, because on daily chart it is about to encounter the 55-day SMA, which is located just a little bit above the 61.8 Fibonacci retracement level. In other words, there is a high chance that very soon the dominant ascending channel will start transforming into a rising wedge.Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as 52% of open positions are short. In the meantime, 52% of pending commands are to buy the commodity.
OANDA Gold traders became bullish, as only 62% of open positions are long. In the meantime, SAXO bank traders are similarly bullish, as only 65% of open positions are also long.