- SWFX market sentiment is 75% bullish
- 62% of pending orders in 1000-pip range are set to SELL Gold
- No data impacting gold
The surge of the bullion continued on Tuesday, as the metal passed the resistance of the 200-hour SMA. Due to that reason, no resistance laid on the path of the metal up to the 1,200 mark.
The Energy Information Administration released Crude Oil Inventories data that came better-than-expected of 6.8 Million to forecast –2.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Kevin Nicholson, the chief market strategist at RiverFront Investment Group said: "Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017".
Nothing impacting the bullion
Monday's and Tuesday's economic calendars are empty. It is the third week of the month. Due to that reason it is no surprise that there are no data releases scheduled.
Meanwhile, note that on Wednesday there will be rather important data releases occurring. Namely, the Canadian Retail Sales are expected to cause almost 70 pip move on the USD/CAD. Moreover, the US Crude Oil inventories are expected to give the usual half a dollar bounce to one or the other side.
XAU/USD tests long-term SMA
The yellow metal has appreciated 2.50% against the US Dollar since August 16. The same bullish sentiment was apparent on Monday when the 100-hour SMA provided enough support to push the rate past the 1,190.00 level.
On Tuesday morning, Gold was testing the 200-hour and the 55-period (4H) SMAs. If both moving averages are breached together with a three-month descending channel near 1,195.00, the rate should target the 61.80% Fibonacci retracement at 1,215.00 within the following sessions.
In terms of today, this trading session could be rather calm, as no significant fundamental releases are weighting on the pair. In case the 1,195.00 area remains intact, bears should push the rate back to the 55- and 100-hour SMAs near 1,185.00.
Hourly Chart
The daily chart has been reviewed. To descending patterns have been discovered. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
In general, the bullion is set to test the resistance levels just above the 1,200.00 mark, which can either hold its ground and force the rate back down or give up. If the resistance levels are passed, the 1,235.00 level will be targeted.
Daily Chart
Markets remain largely bullish
75% of SWFX market traders are going long on the pair.
Meanwhile, it was previously thought that the domination of pending sell orders in the market might push the price down. Although, since Friday the orders were neutrally shifted to the buy side, as 53% of all pending orders were set to buy the metal on Tuesday.
OANDA traders are also bullish on the commodity with 80% of open positions being long today. Meanwhile, SAXO Bank traders were 68% long on the yellow metal's price.