- SWFX market sentiment is 66% bullish
- 58% of pending orders in 1000-pip range are set to SELL Gold
- Bank of England in focus
By looking at the charts of the yellow metal one can observe that the metal has broken all of the trend lines previously drawn on the hourly chart. However, it could be clearly observed that the simple moving averages are dictating the rules not trend lines. Namely, the 55, 100 and 200-hour simple moving averages are shown on Dukascopy Analytics charts.
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".
Only volatility on the GBP is expected
After a very busy Wednesday some macroeconomic data release traders are set to take a day off. However, there is still one notable event set to occur on Thursday.
Namely, the Bank of England is set to make a rate announcement. Moreover, the market forecast created by Bloomberg and shown on all economic calendars, reveals that the bank is set to hike their interest rates. In theory that is set to cause a jump in the value of the GBP against all other currencies.
XAU/USD breaks trend lines
The yellow metal on Wednesday broke all the previously charted trend lines on the hourly chart of the yellow metal's price. However, the bullion did not fully ignore the trend lines, they managed to squeeze the commodity price prior to a short lived break out to the upside.
In regards to the near term future, the commodity price was located on Thursday just below the various simple moving averages that are used by Dukascopy Analytics. It is expected that these SMAs will force the price of the bullion lower.
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 change their set up orders
66% open positions of SWFX market traders are going long on the metal. Meanwhile, pending ordersare no longer bullish. Instead of 60% of orders being set to buy on Wednesday, on Thursday morning only 53% of orders were set to buy.
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 78% long positions. Previously, 72% of Saxo trader were long on gold.
The data still shows that larger brokerage clients are more bullish on the metal. Although, the most notable new information is that the retail traders that dominate the Swiss Foreign Exchange sentiment are no longer massively expecting a surge.