- SWFX traders are 58% bearish
- 61% of pending orders in 1000-pip range are set to BUY gold
- Price bounced off 1,350.00 mark
- US Employment data
The yellow metal's price on Monday made another attempt to pass the 1,350 mark. However, the bullion failed to reach further than 1,351.00 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.
US Employment package
The week is set to end for the macroeconomic release swing traders with a package of US employment data. The data release will occur on 13:30 GMT and consist of three various data sets.
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 likely to accelerate today
Gold spent most of Thursday's trading session below the 1,345.50 mark, as its further appreciation was restricted by the 200-hour SMA.
The pair eventually collected enough momentum to dash through this line and the 55– and 100-hour SMAs. As a result, the upper boundary of the short-term ascending channel was breached to the upside.
By Friday morning, the pair had retraced back to the upper channel line. This factor together with bullish technical indicators suggests that the yellow metal is likely to continue its upward momentum in this session, as well, thus accelerating from the 200-hour SMA.
The nearest resistance is set by the five-month high and the weekly R1 at 1,365.00 and 1,367.87, respectively.
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 mark.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 56% of open positions are short. However, 58% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 56% of open positions are short. In the meantime, SAXO bank traders are 53% bearish.