- SWFX market sentiment is 64% bullish
- 63% of pending orders in 1000-pip range are set to BUY Gold
- Full day with data releases
After some increase of volatility the yellow metal's price has remained near the 1,220.00 mark. Meanwhile, a support line has been spotted on the hourly chart.
The Census Bureau released the monthly Durable Goods Orders that came out lower-than-expected of 1.0% compare with forecasted 3.0%, but better than previous period.
"A senior investment manager Patrick O'Donnell, from Aberdeen Standard Investments, said: "It looks like the European side is trying to acquiesce to Trump's demands. They've got more to lose if tariffs look to be placed on autos, for example. So over multi-month horizon, we'll probably see lower tariffs globally".
Very busy day
On the calendar of Wednesday there are five notable data releases occurring for various currencies. However, in regards to the strength of the US Dollar and subsequently this financial instrument, there are three notable events set to occur.
First will be the ADP Non-Farm Employment Change, which will be released at 12:15 GMT. Second will be the ISM Manufacturing PMI at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The covers will start ten minutes before the data being released.
Those will be usual minor data releases. Meanwhile, today will occur a much larger and more notable event. The US Federal Reserve is set to announce its Federal Funds Rate and release a Statement. This event will also be covered. It will take place at 18:00 GMT.
In addition, if you are just looking for a quick trade of a release, today at 14:30 GMT the US Crude Oil inventories will be published. The data set has proved itself as one creating a 60 base point bounce almost each week.
XAU/USD fails to breach range
Gold has been trading sideways against the US Dollar since Friday, as it has been stranded in a narrow range between the 55-, 100– and 200-hour SMAs and the 1,218.50 mark.
The pair tried to re-test the longer-term SMAs mid-Tuesday, but bulls lacked the necessary momentum to dash through this weekly resistance. Nevertheless, bears also failed to accelerate, thus showing that the bearish sentiment is not very strong, as well.
When one of these sides eventually takes the upper hand, the yellow metal should surge considerably in the breakout level. Upside target is the monthly PP and the 100-period (4H) SMA at 1,235.00, while a fall can be limited solely by the weekly S1 at 1,205.00. Medium-term signals remain bullish.
Hourly Chart
The previously described narrow ascending channel was broken by the resistance of the 1,235.00 level. However, the move on a larger scale could have been anticipated, as the commodity price remains in a large scale descending channel pattern.
Daily Chart
Swiss traders still bullish on XAU/USD
64% open positions of SWFX market traders are going long on the metal. Meanwhile, pending orders are once more massively bullish, as 60% of all set up orders are set to buy the metal. That could provide the needed push for the bullion to surge.
OANDA traders are bullish on the commodity with 83% of open positions being long on the XAU/USD pair today. Saxo Bank traders are likewise bullish with 72% long positions.
This shows that institutional traders are considerably bullish on Gold. Meanwhile, some of the retail sector are still shorting the metal in expectations that it will drop.