- SWFX traders are 51% bullish
- 68% of pending orders in 500-pip range are set to BUY the gold
- Gold price recovers after slip to 1,287.00
- Upcoming Events: Quiet Monday
On Friday, the exchange rate made breakout from symmetrical triangle pattern to the south. Fortunately, the deep fall was neutralized by the 100-day SMA and the weekly PP. Today, the pair is expected to test resistance near the 1,293.00.
Commerce Department stated that the US durable goods orders fell sharply 1.2% in October, while its core measure marked slightly weaker increase of 0.4% in the same period. However, the solid growth trend was sustained, pointing to the stronger contribution to the GDP in the Q4. Meanwhile, the FOMS minutes suggested that the key interest rate could be raised soon, if the medium-term prospective remain upbeat.
Silent Monday
By tradition, there are scheduled no macroeconomic data releases that could notably affect the price of yellow metal during this trading session.
XAU/USD heads towards 1,293.00 again
During the previous trading session the exchange rate indeed formed and made a breakout from junior symmetrical triangle pattern. Fortunately, a combined support formed by the 100-hour SMA and the updated weekly PP at 1,286.16 managed to turnaround the pair. In short run, the surge of the yellow metal once again is likely to be halted near the 1,293.00 and 1,295.00 resistance levels, which might lead to formation of a minor ascending triangle. But in larger perspective the pair is projected to reach the upper boundary of a medium-term ascending channel near the 1,300-1,302.00 marks. In support of this assumption, 55% of traders remain bullish on the given pair. Moreover, since that area is backed up by the 23.6% Fibonacci retracement level there is little chance that the pair will manage to breakout to the top.
Hourly Chart
The bullion is continuing to appreciate against the buck in an ascending channel. As the current market price is located above the 55-day SMA, the weekly PP and the 100-day SMA, the pair is expected to continue heading to the top towards the monthly R1 at 1,289.00.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutral on valuation of the gold, as 51% of open positions are long. Accordingly, 51% of pending commands are to buy the commodity.
OANDA traders are bullish, as 66% (+2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 56% (-1%) of open positions are long.