- SWFX traders are 54% bearish
- 60.53% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,292.24
- Upcoming Events: Quiet Tuesday
As it was expected, after hitting the 1,300 mark, the yellow metal's price began a period of consolidation. The decline is likely going to continue, as the metal's price has not still reached the lower trend line of the ascending channel, which together with another support level might reverse the metal's direction.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
A day off for Swing Traders
On Tuesday there are no notable data releases scheduled, which might affect the financial markets. However, on Wednesday morning, at 07:00 GMT ECB President Draghi will give a speech. The speech given by a central bank's head might cause a surge or decline of the yellow metal, if the run to or from the currency is large. Although, that scenario is highly unlikely.
XAU/USD fails to climb above 1,292.91
As it was expected, previous trading session the yellow metal spent in a steady surge against the American Dollar. However, the soar did not last for long, as it was stopped already at the closest resistance level set up by the monthly R1 at 1,292.91.
At the moment, the pair is moving horizontally, being squeezed between two notable barriers. The first is made of a combination of the 100- and 200-hour SMAs as well as the weekly PP at 1,284.70. The other one is made of the above monthly R1, but most importantly of an area located around the 1,296.00 mark, which represents a crossroad of the two junior ascending channels' upper boundaries.
Hence, it seems that the bullion will prefer to move either horizontally, or downwards.
Hourly Chart
By looking at the larger picture on the daily chart, one can observe that the metal's price has not reached the upper trend line of the long term ascending pattern. However, various analysts might draw the pattern differently.Due to that reason careful decision making should be the top choice at the moment.
Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy are slightly bearish, as 54% of open positions are short. Meanwhile, trader set up pending commands are 60.53% bullish.
OANDA Gold traders are almost neutral, as open positions are 55.37% short. In addition, SAXO bank traders also remain close to being neutral, as 51.73% of open positions are short.