- SWFX traders are 53% bullish
- 63% of pending orders in 500-pip range are set to BUY the gold
- Pair crossed 200-hour SMA near 1,278.95
- Upcoming Events: Empty Monday
An escalation of the North Korean crisis forced traders to actively transfer their funds into yellow metal, thus defusing the effect from surprising release of information about the US labour market. As soon as markets will calm down, the buck is expected to start recovering against the gold. However, this attempt is likely to fail due to many technical barriers that stand on its way.
The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma. However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.
Quiet Monday
Unfortunately for swing traders, an economic calendar does not contain any fundamental data releases for this day.
XAU/USD surges by 1.8%
Due to another round of heated rhetoric between Donald Trump and Kim Jong Un, the yellow meatal appreciated against the buck by 0.93% just in one hour and then continued the surge. As a result, the pair started new trading session above the 200-hour and the 61.8% Fibonacci retracement level, which previously formed strong resistance. On the one hand, the rate could continue the soar and try to reach the 1,290.00 mark, using a barrier-free area in its favour. This assumption is additionally supported by the fact that fears over war on the Korean peninsula haven't gone anywhere yet. On the other hand, after such sudden and massive loss, the buck traders inevitably are going to try to restore lost positions. There is a need to remember that the pair is still expected to reach the bottom edge of dominant channel up.
Hourly Chart
Another round of war of words between Kim and Trump forced the pair to return back to the 61.8% Fibonacci retracement level. The bullish market sentiment suggests that it might continue to move to top, thus breaking through the upper edge of a junior descending channel. If this scenario materializes, the rate will basically have a free path up until the 55-day SMA near 1,293.50, which will be contrary to the preceding assumption, according to which the pair was expected to slip to the bottom edge of a larger ascending channel.Daily Chart
Markets sentiment remains neutrally bullish
Traders of Dukascopy remain neutrally bullish on valuation of the gold, as 53% of open positions are long. In the meantime, 51% of pending commands are to buy the commodity.
OANDA traders are bullish, as 71% (+6%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (-12%) of open positions are also long.