- SWFX traders are 56% bearish
- 51% of pending orders in 1000-pip range are set to BUY gold
- Price bounced off 1,350.00 mark
- ISM Manufacturing PMI
The previously discovered short term channel down pattern of the hourly chart has provided resistance to the metal's attempt to regain ground. However, before a descent to the 1,330 mark occurs, the pair is still set to encounter the support of the weekly PP at the 1,338.08 level.
The US Federal Reserve announced the decision to keep interest rates at 1.50% on Wednsday, but stated that consumer inflation is likely to accelerate this year, fuelling expectations that borrowing costs would keep climbing under the new Central Bank's Chief Jerome Powell.
Citing strong increases in household spending, capital investment and employment, the Fed anticipated the country's economy to expand at a modest pace and the job market to remain solid in 2018. The Bank is expected to hike rates three times more this year.
ISM PMI
On Thursday there is one data release to focus on. The ISM Manufacturing PMI is set to be published at 15:00 GMT.
The release will be covered on the bank's webinar platform live. Join by clicking on the notification on the JForex platform or find the webinars in the TV section.
XAU/USD forms bullish triangle
Following a three-day period of decline, Gold managed to recover some of its lost positions on Wednesday. During this time, the par remained fluctuating in between the bounds of the 55– and 100-hour SMAs.
The pair's movement during the past three sessions demonstrates the existence of a short-term ascending triangle.
This pattern is generally a bullish formation that should guide the pair higher within the following days. This scenario is likewise reinforced by bullish technical indicators.
Thus, the yellow metal should strengthen against the US Dollar in this session. A confirmation of this scenario would be provided by a breakout of the weekly PP at 1,348.20. Conversely, possible losses should be limited by the 1,335.00.
Hourly Chart
A new long term channel up pattern has been charted on the commodity price's daily chart.
However, the lower trend line of the pattern has not been touched twice. Meaning it is still a speculative pattern. Although, it can be seen that the confirmation might occur at 1,338.00 or 1,330.00 mark.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 56% of open positions are short. However, 59% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 59% of open positions are short. In the meantime, SAXO bank traders are 53% bearish.