- SWFX market sentiment is 60% bullish
- 62% of pending orders in 1000-pip range are set to BUY Gold
- Empty days for US macro traders
The bullion has surged ignoring all technical levels. Most market participants don't see any basis for this surge.
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 breaks patterns
The bullion broke the upper trend line of the long term descending channel, which had pierced a dominant support level.
The most notable aspect about the move is that the bullion did not even stop at the 55 and 100–hour simple moving averages, which were providing resistance. Moreover, the upper trend line of the descending pattern was also ignored.
Only the 200-hour SMA provided some sort of significance, as it forced a short lived retreat of the metal.
On Wednesday, all attention was on whether the 200-SMA will provide enough support to push the rate up to the 1,270.00 mark.
Hourly Chart
It was initially thought that the lower trend line of the dominant descending channel was broken. However, it seems that the recent movements have actually revealed the actual borders of the commodity price.
That is the only basis for the surge that can be seen from a technical perspective. Namely, the methodology used by Dukascopy analytics to measure market movements.
Daily Chart
Swiss markets are massively bullish
60% open positions of SWFX market traders were long during the midday hours. The Swiss Market sentiment previously was 63% long.
Meanwhile, trader set up orders are 54% bullish. This number has not changed since Tuesday.
It can be deducted from the sentiment data that retail traders have closed some of their very short term long positions. However, some are still waiting to open bullish positions.
OANDA traders are bullish on the pair with 79% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 70% long positions. The bank's traders have taken profit, as previously 74% of open positions were long.