- SWFX traders are 52% bearish
- 53.28% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,269.77
- Upcoming Events: US ADP Non-Farm Employment Change
On Wednesday morning the yellow metal was in a retreat. The fall of the bullion was a continuation of the previously started downwards move, as the commodity price has bounced off the upper trend line of a medium term ascending channel pattern. The decline is a period of consolidation, which is likely going to go down as low as 1,260.
The US National Association of Realtors reported that the Pending Home Sales Index rose twice as much as anticipated by a seasonally adjusted 1.5% in July, following an upwardly revised 0.7% drop in the prior month. Nevertheless, the strong increase offset previous declines only partially and suggested that existing home sales are likely to increase in the near term, as fewer available properties forced buyers to act immediately. Analysts expect housing sector to continue recovering after being stymied by the lack of homes, which led to higher prices.
ADP employment data
On Wednesday, in regards to the US Dollar, all eyes will be on one data release. The ADP Non-Farm Employment Change data will be published at 12:15 GMT. The data release will be covered by the Dukascopy Research team on the bank's live webinar platform.
XAU/USD slips to 100-hour SMA
The first half of previous trading day the yellow metal spent in a confident upward movement, supported by the 55-hour SMA near 1,267.26 as well as the release of a number of disappointing US macroeconomic data. Once an upside momentum was over, the buck started to restore lost positions and dragged the rate to the bottom, passing through the 20-, 55- and 100-hour SMAs. Given that SWFX traders remain slightly bearish on the pair, it might slip a little bit further towards the bottom trend-line of an ascending channel that is backed up by the weekly PP at 1,261.80 and the approaching 200-hour SMA. On the other hand, certain technical indicators send a signal that the bullion is already oversold and, thus, might start the surge without reaching the pattern's boundary.
Hourly Chart
The daily chart reveals that the commodity price simply bounced between two various levels of significance during Tuesday's trading session. The surge was stopped by a larger timeframe pattern's upper trend line.Daily Chart
SWFX traders bounce around neutral zone.
Traders of Dukascopy remain in the neutral zone, as 52% of open positions are short. Meanwhile, the bulls have retreated in regards to the set up order proportion, as 53% of set up orders are to buy the metal, compared to 62% previously.
OANDA Gold traders remain with a strong bullish outlook, as open positions are 65% long. In the meantime, SAXO bank sentiment is 57% bullish.