- SWFX market sentiment is 72% bullish
- Pending orders in the 1000-pip range set to buy in 52% of all cases
- No more relevant data
The yellow metal continues to trade near the 1,230 level. However, it had declined down to a support level near the 1,221.00 mark during the morning hours of Wednesday's trading.
Previous week Dukascopy covered the US Crude Oil Inventories data release. Oil prices decreased after the US Crude Oil Inventories data release on Thursday at 15:00 GMT. The one-minute candle lost 31 pips, or 0.44% right after the data release. In the next minutes the rate was trading at the 71.30 level.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6M, compare to forecasted 2.3M.
No more data for gold
Macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade sideways among the large pattern line and the monthly PP at 1,227.33 mark.
Besides, the 100-hour simple moving average will try to support the rate during the trading session. Most likely, the gold will be traded at the 1,220.00 level on Wednesday.
Hourly Chart
Dukascopy Analysts adjusted the dominant ascending pattern's resistance line to match the recent booked high. It can be seen that, by doing the adjustment, a pattern with more confirmation points can be seen.
If this pattern guides the rate in the near future, the metal should decline or trade sideways until the end of this year.
Daily Chart
Sentiment remains long on gold
On Wednesday, 72% of traders were long. The sentiment has been near the 70% mark since Friday,
Trader set up pending orders are still mostly set up to buy more gold. 68% of all orders are set to buy.
From this information we can deduct that, if the metal continues to surge, a lot more buying will begin, as most pending orders are still set to buy.