- SWFX traders are 52% bullish
- 66% of pending orders in 500-pip range are set to SELL the gold
- Pair tried so slip below 1,276.20
- Upcoming Events: Empty day
In result of Shinzo Abe's confident victory, the Dollar strengthened against all major currencies, including the yellow metal. Due to this and other fundamental factors the pair, generally, is expected to continue to move in the southern direction. But in shorter perspective there is a great chance that the rate will be stopped by the 100-day SMA that is fluctuating near the 1,276.45 mark.
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September. The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, weak affordability is likely to keep prices high confusing considerable buyers' interest throughout the US.
Empty day
No signifficant macroeconomic data releses are planned for today, according to economic calendar.
XAU/USD approaches 100-day SMA
Previous trading week the exchange rate ended at the intersection of the 61.8% Fibonacci retracement level and the bottom boundary of two ascending channels and was ready to make a rebound. However, an unconfirmed victory of the Japan's PM Shinzo Abe and his party strengthened the Dollar and pushed the through this combined support barrier. This fact as well as Donald Trump's intention to complete tax reform, after successful vote on budget in the Senate, indicates that the pair might continue to move in the southern direction towards the weekly S1 at 1,270.00. On the other hand, the fact that on daily chart the pair is facing the 100-day SMA suggests that the pair is likely to retreat for some while. Plus there is a need to take into account that market sentiment is 53% bullish.
Hourly Chart
On daily chart bears are trying to push the pair through the 100-day SMA that is located slightly below the 61.8% Fibonacci retracement level. An information background suggests that these attempts are likely to succeed. In that case, the pair should face no notable obstacles on its way towards the bottom edge of dominant ascending channel.Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 52% of open positions are long. Accordingly, 52% of pending commands are to buy the commodity.
OANDA traders are bullish, as 63% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 59% (+1%) of open positions are also long.