- SWFX traders are 53% bearish
- 53.45% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,272.05
- Upcoming Events: US Building Permits; FOMC Meeting Minutes
The bullion has reached a cluster of various supports and reached below the 1,270 mark. The move was expected. However, the near future of the metal's price seems a little mysterious, as there are many levels of significance affecting the price of the bullion.
The Commerce Department revealed that retail sales in the United States recorder the biggest increase in the last seven months, surging 0.6% month-over-month in July and following an upwardly revised gain of 0.3% in the prior month.
July's upbeat figures suggested that the economy kept gaining momentum in the Q3 amid higher confidence in the country's economic outlook. Meanwhile, the Federal Reserve became less likely to delay the next interest rate increase until 2018.
US Building Permits and the Federal Reserve
Main focus on Wednesday will be on the release of the FOMC Meeting Minutes. However, until then the markets might experience some volatility from the US Dollar's side due to another fundamental data release. At 12:30 GMT the US Building Permits data will be published. The data release is set to be covered on the live webinar platform by the Dukascopy Research team.
XAU/USD reaches 1,270 mark
The bullion reached the targeted 1,270 mark, as the better than expected fundamental data was released during the middle of Tuesday's trading session. In addition, the fall that occurred due to the release of the data stopped exactly at the support of the junior descending channel pattern.
As a result on Wednesday it can be expected that the commodity price will reach higher and touch the upper trend line of the channel. However, by looking at the various level of significance and taking into account already broken lines, it can be assumed that the movement of the metal could be rather flat until it reaches the support of the active dominant pattern just below the 1,270 mark.
Hourly Chart
The Daily chart shows that the support of the ascending dominant pattern might have already been reached. If one takes into account how the lines are supposed to indicate a zone not a concrete price level, the rebound is about to occur soon. In that case the next target for the metal would be the 1,278 level, where the weekly PP is located at.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 53% of open positions are short. Meanwhile, trader set up pending commands are 53.45% bullish.
OANDA Gold traders are almost neutral, as open positions are 50.89% short. In addition, SAXO bank traders also remain close to being neutral, as 50.95% of open positions are long.