- SWFX traders are 53% bearish
- 47% of pending commands are to buy the bullion
- The metal's price started the Tuesday's trading at 1,256.42
- Upcoming Events: CB Consumer Confidence
The yellow metal has bounced off the monthly pivot point, which was described previously. However, a surge of the commodity price is still expected to continue, as various technical clues indicate that that scenario is about to become reality.
Markit's report on the Manufacturing PMI for the Euro zone came in slightly weaker than anticipated in July and had a small impact on the EUR/USD exchange rate. As soon as the release was published, the 19- country currency strengthened against the Greenback by 0.03% to reach 1.6432. The survey showed that the Euro zone's index for manufacturing activity dipped to 56.8, falling short of expectations for 57.3 points. The modest fall in July's data indicated that the economic expansion in the Euro zone lost its momentum for the second straight month, but remained noticeable.
CB Consumer Confidence in focus
Although it is a rare sight that the US CB Consumer Confidence index release causes volatility, which swing traders can profit from, the Dukascopy Research team has decided upon covering this data release. The index will be published at 14:00 GMT.
XAU/USD bounces off monthly PP
As it was expected, the monthly PP at the 1,258.37 mark put up resistance to the commodity price. As a result of the bounce off from the level of significance the yellow metal traded near the 1,255 mark on Tuesday morning. Due to the fact that the monthly pivot point has proven itself as a strong enough level of significance to stop the surge of the metal, additional support will be needed for the bullion. The support needed to surge above the monthly PP is mot likely going to be provided by the 55-hour SMA combined with the lower trend line of the ascending channel pattern. As the two mentioned levels of support surge, they will push the metal's price higher. However, that is not likely going to occur during Tuesday's trading session.
Hourly Chart
The daily chart reveals that the most significant daily levels have been left below the commodity price, as the metal trades above the 1,250 mark. The 55 and 100-day SMAs are together with the weekly PP providing support near the 1,247 level.Daily Chart
SWFX traders remain almost neutral
Traders of Dukascopy are neutrally bearish, as 53% of open positions are short. Meanwhile, 60% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a strong bullish outlook, as open positions are 66% long on Tuesday. In the meantime, SAXO bank sentiment is 55% bullish.