- SWFX traders are 56% bullish
- 65% of pending orders in 500-pip range are set to BUY the gold
- Gold price falls to 1,276.00
- Upcoming Events: US Existing Home Sales, Fed Chair Yellen Speaks
Rising concerns over Merkel's inability to form a government, led to active appreciation of the buck, which, in turn, dragged the exchange rate to the 1,277.00 level. Undoubtedly, bulls are going to try to return the pair back to the pre-fall 1,293.00 level. However, a bunch of moving averages is expected to neutralize these attempts.
The Commerce Department said that the US homebuilding rose to the highest level of the year in October, where housing starts jumped 13.7% to a seasonally adjusted yearly rate of 1.29M units, while building permits added 5.9% to a 1.30M unit rate in October. Strong figures were expected to contribute to stronger economic expansion in the US over the course of the Q4.
Fed Chair Yellen Speaks
Although the Fed Chair Yellen is expected to participate in panel discussion today at the New York University Stern School of Business plus there is planned a release of the US Existing Home Sales, none of these events is likely to cause major price movements in the markets.
XAU/USD drops by 1.27%
Growing fears about inevitability of snap parliamentary elections in Germany led to appreciation of the Dollar against basket of currencies, including the yellow metal. In result of this downfall, the exchange rate reached and made a rebound from the bottom edge of a senior ascending channel. As market sentiment remains 56% bullish, traders are expected to make numerous attempts to push the pair through all three moving averages and return it to the pre-fall 1.293.00 level. However, without similarly strong impulse this recovery is likely to be delayed until tomorrow. In this sense, declaration of North Korea, as a sponsor of terrorism, barely helped the pair to break through the monthly PP at 1,279.41.
Hourly Chart
As the current market price is located below the 100-day SMA, the pair is unlikely to make a fully-fledged rebound from the bottom trend-line of an ascending channel. In other words, this trading session the pair is likely to spend near the 1,281.00 mark.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 56% of open positions are long. Accordingly, 56% of pending commands are to buy the commodity.
OANDA traders are bullish, as 74% (+8%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (+5%) of open positions are long.