- SWFX traders are 55% bearish
- 60% of pending orders are set to buy the Dollar
- Closest support at 1,329.68 mark
- Upcoming Events: US PPI, Crude Oil Inventories
Yesterday the yellow metal slipped below the support at 1,329.68, but then managed to recover. As a result, the news trading day in started in a limbo between 100- and 200-hour SMAs from the top and the weekly S1 as well as the 55-hour SMAs from the bottom. The situation is expected to clarify as soon as the US will release an update on its PPI in the middle of the day.
The Labour Department released its JOLTS report for July, where the amount of job openings rose surprisingly to 6.17M, following a downwardly revised figure of 6.12M in June. Data showed that slower job growth was temporary, while a new record high for the number of job openings indicated that demand for workers continued to be strong. Moreover, the labour market kept tightening due to a lack of skilled labour supply, though remained in a healthy growth state.
US PPI in focus
Today is not reach on macroeconomic data releases. Namely, the only notable announcement will happen at 12:30 GMT when the Bureau of Labor Statistics will publish the recent information on the US PPI.
XAU/USD trades around 1,329.68
Even though the pair managed to cross the weekly S1 at 1,329.68 yesterday, the pressure of the bears was not strong enough to push it to the bottom edge of a dominant ascending channel. On the other hand, a fully-fledged rebound did not happen as well and is not expected to happen today either. The main reason for such assumption is that the northern side contains too many technical barriers, such as the 200- and 100-hour SMAs as well as the weekly PP at 1,343.70. They could be crossed if the gold had fundamental rationale, but for now it does not. The opposite side, in turn, has an empty area up until the lower support line of the above pattern.
Hourly Chart
In accordance with the pattern theory perspective, the gold made a rebound from a resistance line of long-term ascending channel (or medium rising wedge) and started to move in the opposite direction. From this perspective, now the price of yellow metal should be driven by bears, who will try to drag it at least until the 61.80% Fibonacci retracement level at 1,278.96. Even though yesterday the pair stuck near the 1,329.70 level, this delay does not change the general projection: in longer perspective the gold is expected to lose value against the buck.Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as 55% of open positions are short. Meanwhile, 56% of pending commands are to buy the commodity.
OANDA Gold traders remain neutral, as open positions are 53% bullish. In the meantime, SAXO bank traders are neutrally bearish, as 50% of open positions are short.