- SWFX traders are 54% bullish
- 70% of pending orders in 500-pip range are set to BUY the gold
- Pair rebounds from 61.8% Fibo
- Upcoming Events: US Unemployment Claims and Philly Fed Manufacturing Index
In result of the three-day fall, the exchange rate formed a falling wedge and made a breakout from it using the 61.8% Fibonacci retracement level, as a trampoline. Such outcome suggests that the pair might continue to move to the top. However, that might be difficult due to presence of various moving averages as well as the weekly S1 at 1,284.92.
The Commerce Department revealed that building permits fell to 1.13M in the month of September. Meanwhile, homebuilding in the US dropped to the weakest level in a year in reported period, as Hurricanes Irma and Harvey caused the disruption of single-family homes construction in the South, which could drag the country's GDP growth in the September quarter.
US Unemployment Change update
At 12:30 GMT traders will have an opportunity to follow a weekly update on the number of unemployment claims in the United States and simultaneously take a look at Philly Fed Manufacturing Index.
XAU/USD tries to cross 61.8% Fibo
Despite release of negative data about the American housing market growth, the exchange rate continued to move to the bottom, in the process crossing a combination of the weekly S1 and the lower support line of senior ascending channel. At the moment, the pair is testing the 61.8% Fibonacci retracement level at 1,278.98. It seems that pressure from the slipping 55-, 100- and 200-hour SMAs should eventually push the pair through that barrier. Afterwards, the pair would face no obstacles on its way up until the weekly S2 at 1,265.92. On the other hand, daily chart clearly indicates that an area near 1,276.34 represents location of the 100-day SMA. From this perspective, it seems that the pair is going to make a temporary rebound. In addition to that, there is a need to remember that the average sentiment remains 65% bullish.
Hourly Chart
In line with expectations, the pair faced difficulties with passing through the 100% Fibonacci retracement level, which is secured by the 100-day SMA. This fact that this trading day the currency pair will finish in a green zone.Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 54% of open positions are long. Accordingly, 54% of pending commands are to buy the commodity.
OANDA traders are bullish, as 68% (+5%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (+1%) of open positions are also long.