- SWFX traders are 53% bullish
- 67% of pending orders in 500-pip range are set to BUY the gold
- Pair tried to reach above 1,284.00 mark
- Upcoming Events: Empty day
After the continuation of the decline of the bullion's price a rebound occurred on Tuesday morning. The metal's price jumped after encountering the lower trend line of the dominant ascending channel pattern and attempted to reach above the 1,284.00 level.
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September.
The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, weak affordability is likely to keep prices high confusing considerable buyers' interest throughout the US.
Empty day
According to economic calendar, there are no notable data releases scheduled for today.
However, tune in on Wednesday, when the US Core Durable Goods Orders data sets will be published at 12:30 GMT. The Dukascopy research team is planning on covering the data release.
Gold rebound results in jump
On Tuesday morning initially it looked like the yellow metal has broken the dominant ascending channel. However, the situation is quite different. After examining the chart more one can discover that the ascending channel needs to be adjusted. Meanwhile, the bullish long term outlook still persists.
In regards to the short term outlook, the bullion's price had approached the support of the proven 61.80% Fibonacci retracement level at the 1,279.05 level, where it seemed to have made a rebound.
Although, the metal still faced the 55 and 100-hour SMAs, which needed to be passed until the price surges back higher.
Hourly Chart
The daily chart reveals that the ascending channel, which is described in the hourly chart's analysis, is not the most dominant pattern. There is a larger scale ascending channel pattern.Meanwhile, the previously described pattern is a representation of the latest surge in the borders of the most dominant pattern. Due to that reason it can be still possible that the metal's price passes the close by support levels and declines down to the 1,260 mark.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are largely bullish on valuation of the gold, as 53% of open positions are long.
Accordingly, 71% of pending commands are to buy the commodity.
OANDA traders are bullish, as 66% (+3%) of open positions are long, compared to previous trading day.
In the meantime, SAXO bank traders are less bullish, as 59% (+0%) of open positions are long.