- SWFX traders are 51% bullish
- 53% of pending orders in 500-pip range are set to SELL the gold
- Gold price consolidates near 1,276.00
- Upcoming Events: US Non-Manufacturing PMI
In line with expectations, the pair continued to move horizontally near resistance zone located at 1,276.00. The slowly decreasing market sentiment suggests that the pair might actually break the bottom boundary of a long-term ascending channel.
US consumer inflation growth weakened in October, as the hurricane-related increase in purchases of motor vehicles started to fade. The Fed's closely watched inflation measure, the Core PCE Price Index excluding energy and food increased 1.4% year-over-year in October, though the figure undershot the bank's 2% target for more than 5 years. Recent economic data strengthened projections for the Fed to raise borrowing costs once again in December.
Second PMI release
At 15:00 GMT the Institute for Supply Management will release a second survey, this time about the US non-manufacturing PMI that is expected to decrease from 60.1 to 59.2.
XAU/USD moves horizontally near 1,276
As it was anticipated, yesterday's trading session the exchange rate spent in a flat movement between support and resistance zones located at the 1,270 and 1,275 marks. As long as there are no substantial news coming from the United States, the pair is not expected to jump above the 1,280.42 level that represents location of the monthly PP and the 100-hour SMA. The similar assumption holds for the 1,270.00 mark that is crossed by the bottom boundary of a dominant ascending channel. In larger perspective it is still unclear whether the above dominant pattern will sustain or it will be broken amid the pressure from a medium-term descending channel. Most probably until the market sentiment turns bearish the rate will manage to keep gradual advance.
Hourly Chart
In beginning of the previous week the pair has made a rebound from the upper trend-line of a medium-term descending channel. At the moment, the buck is appreciating against the gold in a minor descending channel and is testing the bottom boundary of a long-term dominant ascending channel. In theory, the larger pattern should sustain. However, without proper impulse the pair might fail to cross a combination of the weekly and monthly PP as well as the 55- and 100-day SMAs. Moreover, the upcoming adoption of the US tax reform as well as slowly decreasing bullish sentiment also point out on possibility of a red scenario.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are 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 71% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 62% (+0%) of open positions are long.