- SWFX traders are 51% bullish
- 60% of pending orders in 500-pip range are set to SELL the gold
- Gold meets resistance at 1,295.00
- Upcoming Events: Post-Fed Thursday
During the previous trading session, the exchange rate continued the soar from the bottom edge of senior ascending channel. Although the upside momentum was quite strong, a resistance area near the 1,295.00 mark managed to temporarily pause the surge. Today a small retreat is likely to follow, even though in larger perspective the yellow metal is expected to continue strengthening against the buck.
Commerce Department stated that the US durable goods orders fell sharply 1.2% in October, while its core measure marked slightly weaker increase of 0.4% in the same period. However, the solid growth trend was sustained, pointing to the stronger contribution to the GDP in the Q4. Meanwhile, the FOMS minutes suggested that the key interest rate could be raised soon, if the medium-term prospective remain upbeat.
Quiet Thursday
There are scheduled no macroeconomic data releases that could cause notable price movements today.
XAU/USD reaches resistance at 1,294.50
The yellow metal continued to rally against the buck after making a rebound from the bottom trend-line of a medium-term ascending channel. By the end of the day the pair has reached resistance zone near the 1,294.50 mark and made a rebound amid optimistic economic outlook expressed in the FOMC Meeting Minutes. Accordingly, in first half of this trading session the pair might temporarily retreat to the weekly PP located at 1,287.22. However, the deeper plunge is unlikely due to support provided by the rising 55-, 100- and 200-hour SMAs. On the other hand, as bearish momentum comes to an end, the rate might actually stay within boundaries of another junior ascending channel and try to bypass the above resistance one more time. In general, appreciation of the bullion is expected to last at least for another three days.
Hourly Chart
Previous trading session did not bring any notable changes to the overall picture, as the exchange rate continues to fluctuate within medium-term ascending channel. For now, there are no factors that could dissolute this pattern.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy became neutral on valuation of the gold, as 51% of open positions are long. Accordingly, 51% of pending commands are to buy the commodity.
OANDA traders are bullish, as 64% (-6%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 56% (-4%) of open positions are long.