- SWFX traders are 54% bullish
- 74% of pending orders in 500-pip range are set to BUY the gold
- Pair tries to cross monthly PP at 1,304.85
- Upcoming Events: US Empire State Manufacturing Index
In result of release of unfavourable inflation data, the bullion continued to rally against the buck. A number of technical indicators, including moving averages, indicate on further surge of the rate. On the other hand, it seems that the pair is fluctuating in a rising wedge pattern, which is likely to force it to change a direction in the nearest future. In addition, there is a strong resistance level located near the 1,314.00 mark.
The Labour Department showed that the US Consumer Price Index edged 0.5% higher in September, the strongest gain since January, which put the yearly rate of consumer inflation to 2.2% in the reported period. Separate report showed a 1.6% increase in the country's retail sales, where its sustainable firmness could cause a cease of low inflation trend and confirm the Fed's stance to raise interest rates anytime soon.
Empire State Manufacturing Index
Unfortunately, there are no events planned for today that could create an attractive opportunity for news traders. The only event that might represent certain interest will be the Empire State Manufacturing Index that will be released by the NY's Fed at 12:30 GMT.
XAU/USD surges in two channels
Due to increase of the US Consumer Price Index, the yellow metal continued to advance against the buck simultaneously in two ascending channels. On the one hand, the pair is experiencing pressure from the 55- and 100-hour SMAs, which are continuously pushing it to the top. On the other hand, the pair faces a notable resistance level formed by the monthly PP at 1,304.85, which it has already failed to bypass once. There is a need to notice that intersection between the above two channels reminds another pattern, i.e. rising wedge. If this assumption is true, the pair has to make a breakout to the bottom somewhere between the 1,305 and 1,310 marks. However, if macroeconomic background will remain unfavorable, the rate most likely is going to surge to the 1,314 level.
Hourly Chart
On daily chart the pair continues to trade in the green zone seventh day in a row. The key task for today will be to bypass the monthly PP at 1,304.85, which will open a path to the next resistance near the 1,314.00 level. As market sentiment remains bullish, there is high chance that these targets will be reached.Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 54% of open positions are long. Accordingly, 54% of pending commands are to buy the commodity.
OANDA traders are bullish, as 67% (+0%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (+3%) of open positions are also long.