- SWFX market sentiment is 60% bullish
- 59% of pending orders in 1000-pip range are set to BUY Gold
- Data sets influencing the USD
The recent short term breaking of a junior pattern has revealed more information to fully redraw the charts of the yellow metal. Meanwhile, note that Dukascopy Analytics has covered a crude oil related data release.
Oil prices dropped down after US Crude Oil Inventories data release on Thursday at 15:00 GMT. The one-minute candle lost 91 pips, or 1.24% to continue fluctuating in 72.315 area.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 1.2M, compare to forecasted negative 4.4M.
Head of commodities strategy at PNB Paribas Harry Tchilinguirian stands: "When there is consolidation in the market, there is also the expectation of an eventual price breakout in either direction. So in the options market, the volatility gets bid up,"
End of week with USA data
Regarding commodities, yesterday saw a surprise on the crude oil charts. Namely, there was a drop of almost one dollar per barrel due to the US Crude Oil Inventories.
Meanwhile, getting back to gold, the commodity price might be influenced by the data release, which is scheduled to occur at 12:30 GMT.
XAU/USD new pattern gets broken
The recently, experimentally drawn pattern on the yellow metal's charts has been broken. However, note that this provides an opportunity for more charting.
First of all, if one looks at the recent almost horizontal decline, it can be spotted that there exists a short term descending pattern. Due to that reason it can be deducted that the previous pattern represented the previous junior move.
By using these facts one can draw a speculative medium scale ascending pattern, which the previous charts lacked. This chart combined with the close by simple moving averages can be used for guidance.
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 61% long.
Meanwhile, trader set up orders are 61% bullish. The orders previously were only 63% bullish.
The data reveals that there are a lot of new players in the market that expect the breaking of resistance levels. If and as that occurs, they will buy into the bullion and push it even higher.
OANDA traders are bullish on the pair with 80% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 75% long positions. The bank's traders have reopened long positions, as on Wednesday 70% of open positions were long.