- SWFX market sentiment is 63% bullish
- 68% of pending orders in 1000-pip range are set to BUY Gold
- Empty days for US macro traders
On Tuesday morning the lower trend line of the descending channel pattern was broken.In addition, the bullion's price has booked a new low level.
The Institute for Supply Management released the monthly US Purchasing Managers' Index data that came out better-than-expected of 60.2, and better from the previous period.
Ross J Burland stands: "It appears that steady business expansion and elevated optimism persisted despite elevated trade concerns. Much of the upside surprise in the topline index in the June report, however, can be attributed to the suppliers delivery index."
Nothing notable until Thursday
On Monday there was minor data release, which did not affect the financial markets after all. Namely, the ISM Manufacturing PMI was released at 14:00 GMT.
Besides that data release, the economic calendars are empty in regards to the US Dollar until Thursday. On Thursday, the ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change might influence the financial markets through the strength of the US Dollar.
ADP data will be out at 12:15 GMT. ISM data will be published at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar. They will begin 10 minutes before the data is released, respectively, 12:05 GMT and 13:50 GMT.
Gold books new low level
As the headline states, the bullion has booked a new low level. Namely, the commodity price had fallen below the 1,340.00 mark. Moreover, during the move, the bullion passed the support of the dominant long term descending channel.
However, after reaching the low level the commodity price began a surge, which was only slowed down by the already passed support of the dominant channel.
The commodity price was most likely going to be stopped by the 55 or 100-hour SMAs, which could force the commodity into trading sideways until it reaches the upper trend line of the short term descending pattern.
Hourly Chart
On the daily chart last Thursday Dukascopy Analysts spotted a descending channel down pattern, which has guided the metal's decline since the middle of April.
As the monthly S2 was passed, the channel's lower trend line was set to support the commodity price down until it reaches the historical low level near the 1,235.00 mark. However, on Tuesday not even the support of the dominant pattern could hold the bullion back from retreating below.
Daily Chart
Swiss markets are massively bullish
63% open positions of SWFX market traders were long during the midday hours. The Swiss Market sentiment previously was 62% long.
Meanwhile, trader set up orders are 54% bullish, which is a decline, compared to Friday. Previously, nearly 53% of orders were to buy.
It can be deducted from the sentiment data that retail traders have opened long positions in expectations of a surge that would follow the decline.
OANDA traders are bullish on the pair with 81% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 74% long positions.