- SWFX traders are 54% bearish
- 53.76% of pending commands are to sell the bullion
- The metal's price started the day's trading at 1,257.90
- Upcoming Events: JOLTS Job Openings
As expected, the commodity price has found support in the lower trend line of the medium scale ascending channel pattern. However, it can be observed on smaller timeframe charts that the metal will face various levels of resistance, as it attempts to rebound.
The Labour Department revealed that the US economy created 209K positions in July, surpassing forecasts for a 185K increase. In the meantime, the unemployment rate dropped to 4.3% from 4.4% in the reported period, matching expectations. Strong figures in conjunction with 0.3% wage growth, the strongest gain since February, provided good signs to expect better CPI and PPI reports this week. In this context, the Federal Reserve would be reassured that further policy normalisation is reasonable, keeping additional rate hikes on the table.
Single US release
The various financial market instruments might be influenced on Tuesday by changes in the strength of the US Dollar. Namely, the JOLTS Job Openings data will be published at 14:00 GMT. However, the data release is highly unlikely going to influence the markets, as it has not done it historically in a long time.
XAU/USD reaches long term support
On Tuesday morning the yellow metal's price was trading just above the lower trend line of the long term ascending channel pattern. However, the commodity price was about to face various levels of resistance. First of all the 55, 100 and 200-hour simple moving averages will attempt to keep the bullion lower. The resistance levels are located, respectively, at 1,260.83, 1,263.25 and 1,264.01 levels. Moreover, there is a weekly pivot level located near the 1,260 mark. Due to these reasons market participants should watch, whether the metal's price breaks through the combined strong resistance or not. As the result of the face off will show the future medium term direction of the commodity price.
Hourly Chart
The support of the 55 and 100-day SMAs was not even reached. The support line of the medium term ascending channel pattern worked without it. Meanwhile, it can be seen that, if the before described cluster of resistance gets passed, the commodity price might surge up to the 1,271 level,Daily Chart
SWFX traders become bearish
Traders of Dukascopy remain in the neutral zone, as 54% of open positions are short. Meanwhile, the bears are also in control in regards to set up orders, as 54% of pending commands are to sell the metal.
OANDA Gold traders remain bullish, as open positions are 53% long. In the meantime, SAXO bank sentiment is 56% bullish.