- SWFX traders are 51% bullish
- 67% of pending orders in 500-pip range are set to BUY the gold
- Gold price reaches monthly R1 at 1,299.00
- Upcoming Events: Fed Chair Designate Powell Speaks, CB Consumer Confidence, Trump meets with Senate Republicans
In result of the previous trading session, the pair confirmed transformation of an ascending channel into the rising wedge formation. This fact only strengthens intention of bulls to elevate the rate to the 1,302.00 level during this trading week.
Sales of new single-family homes in the US marked solid increase to reach a ten-year high due to robust demand throughout the country, providing a boost to the property market. The Commerce Department showed that new home sales rose 6.2% to a seasonally adjusted yearly rate of 685K in October, the highest level in ten years. Moreover, upbeat results indicated that housing kept gaining momentum after the lack of available properties and suitable land restrained the growth.
Powell, Trump and Congress
There three events planned for today that might cause some price movements. The first one is scheduled at 14:45 GMT when Jerome Powell will start testifying on his position before the Congress. Then at 15:30 GMT there will be a release of the CB Consumer Confidence. Finally, through the day President Trump is expected to meet with Senate Republicans and discuss tax reform.
XAU/USD forms rising wedge
In line with expectations, the yellow metal continued to rally against the buck on Monday. In result of the seven-hour surge, the pair managed to reach combined resistance formed by the monthly and weekly R1 at 1,297.00-1,298.00 and confirmed an assumption about transformation of the channel into the rising wedge formation. The appearance of new pattern only additionally confirmed that bulls are trying to push the rate to the 1,302.00 level. As that area is protected by the 23.6% Fibonacci retracement level, the pair is expected to make a fully-fledged rebound. However, in shorter perspective there is need to take into account that Trump's meeting with Senate Republicans regarding prospects of tax reform as well as Powell's appearance before Congress are likely to lead to strengthening of the buck and retreat to 1,292.00.
Hourly Chart
By the moment, the pair is squeezed between the monthly and weekly R1 from the top and the 55- and 100-day SMAs from the bottom. As the pair is fluctuating in a rising wedge formation, the sudden plunge seems unlikely. However, it is also doubtful whether the safe haven gold will gain a momentum to break above the 1,298.00 mark today.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutral on valuation of the gold, as 51% of open positions are long. Accordingly, 51% of pending commands are to buy the commodity.
OANDA traders are bullish, as 65% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 57% (+1%) of open positions are long.