- SWFX traders are 52% bullish
- 59% of pending orders in 500-pip range are set to BUY the gold
- Pair falls to 1,266.00
- Upcoming Events: Quiet day
Following a release of data on the US ISM Non-Manufacturing PMI, the exchange rate fell to the 1,266.00 mark. However, the yellow metal has a good chance to recover until the 1,273.00 level, which represents location of the weekly PP that very soon will be additionally backed up by three moving averages.
The Labour department revealed that the US job growth sped up in October, while the yearly wage growth as well as participation rate fell in the reported period, clouding the outlook of the job market. The report showed that the country's economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.
Empty Monday
There are no events planned for today that are worth following and might present some value for swing traders.
XAU/USD falls to 1,266 amid US PMI data
As it was expected, formation of a symmetrical triangle pattern embodied anticipation of release of the American data on Friday. As the actual results beat expectations, bears managed to strengthen the buck against the yellow metal by 0.84% just in one hour. There is a need to notice two things. First, a rebound near the 1,266.00 mark can be interpreted as a second reaction low a previously undetected junior ascending channel. This assumption implies gradual movement in the northern direction. However, in short term this recovery looks doubtful due to combined resistance that is forming from the weekly PP at 1,273.35 and the falling 55-, 100- and 200-hour SMAs. There is also a need to take into account an existence of a slope that consists of Sep 7, Oct 15 and Nov 2 maximums and is likely to stop the pair from surging until a rebound from the bottom edge of a dominant channel up.
Hourly Chart
From daily chart perspective the buck is expected to continue to gain value against the gold, as the northern side contains not only monthly PP and the 61.8% Fibonacci retracement level at 1,279.00 but also a slope that will continue to exercise additional pressure on the pair.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally 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 72% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (+2%) of open positions are long.