- Swiss market sentiment is 55% long
- 58% of pending orders in 1000-pip range are set to BUY Gold
- Only Canadian data at 12:30 GMT
The most notable developments on Friday on the charts of the yellow metal were on the daily chart. Namely, the commodity price by moving horizontally had passed the resistance of a junior long term descending pattern.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
Canadian employment data
On Friday there is only one notable macroeconomic data release set to occur. However, it will only impact Canadian Dollar pairs, as the data is Canadian. Namely, at 12:30 GMT Canadian employment data sets will be published.
The data release will be a part of the Dukascopy Analytics end of the week webinar, which will begin at 12:00 GMT. Meanwhile, the data release coverage will start at 12:20 GMT.
In the meantime, note that the G7 meetings are taking place today and tomorrow. A trade scuffle can cause large changes in the strength of various currencies.
Gold with no changes
XAU/USD continues to trade sideways for the third consecutive session, as the pair has remained stranded between several notable support/resistance levels.
As apparent on the chart, it has likewise failed to accelerate from the breached two-month channel. A surge above 1,301.00 on Thursday was limited by the 50.00% Fibo retracement and the monthly PP, while a strong support cluster was set by the 100-hour and 100-period (4H) SMAs at 1,295.80.
It is likely that these levels continue to pressure the rate for the following hours. Technical indicators are bearish for this session. In case this scenario occurs, Gold should target the senior channel at 1.287.00. The daily high could be the 200-period SMA at 1,305.00.
Hourly Chart
The XAU/USD commodity price maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31 and on June 5. However, on Friday the resistance line of the pattern was broken.
It occurred not due to a move north, but actually due to the pair fluctuating horizontally just below the 1,300 mark. The mentioned symbolic level was guarded by the resistance of the weekly PP and the 50.00% Fibonacci retracement level and the mentioned pattern's resistance line.
Moreover, one could expect that, as next week the 50.00% retracement level will become the only one standing, the commodity price might surge above the 1,300 mark.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were still bullish. On Wednesday, the proportion was standing at 53%.
Meanwhile, trader set up orders are bullish with 58% of them being set to buy the GOLD. Previously, we observed a large proportion of sell positions in the 1000-base point range. However, that was gone on Wednesday, indicating that the short term selling has already occurred.
All in all, for the third day Dukascopy analysts noticed that retail traders were waiting for the break out to the upside to occur. First of all dominant positions were largely bullish. Secondly, open orders were showing that additional traders would open long positions, if the price breaks higher.
OANDA traders remain largely bullish, as 70% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 68% of total positions being long.