Gold retests pattern's support

Source: Dukascopy Bank SA

The recovery of gold has met with the resistance of the 55-day simple moving average, which pushed the rate back into the support of the medium term ascending channel pattern.

By the middle of Thursday's London trading, the rate had bounced off the support of the pattern.

Economic Calendar Analysis

There are no more events scheduled for this week, which could impact gold prices through the value of the US Dollar.

Meanwhile, take into account that the week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.


XAU/USD short-term forecast

By the middle of Thursday's trading session, gold had reached and bounced off the support of the medium term ascending channel pattern that can be observed on the chart.

In general, the rate is expected to surge and test the resistance of the 55-hour SMA. If the SMA fails to push the rate down once more, the pair should next test the resistance levels that are located from 1,496.30 to 1,500.00.

On the other hand, the SMA could push the rate down to retest the support of the pattern.

Hourly Chart



On the daily candle chart, the commodity price passed the support of the 55-day simple moving average, which has been left behind near 1,505.00.

Meanwhile, the price is being approached by the support of the 100-day simple moving average, which on Thursday was located at the 1,476.19 level.

Daily Chart


Traders remain neutral on Gold

Since Wednesday, 50% of volume was in short and long positions. Namely, the SWFX sentiment was neutral.

Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish– 56% of orders were to buy and 44% to sell.

Previously, the orders were 61% bullish.

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