- SWFX traders are 54% bearish
- 55.64% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,283.18
- Upcoming Events: Quiet Wednesday
On Wednesday morning the price of the yellow metal remained in a short term descending channel pattern, which represents the consolidation after reaching above the 1,300 mark. However, the commodity price was being squeezed in by two clusters of significance, which best could be observed on the hourly chart.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
A day off for Swing Traders
On Wednesday there are no notable data releases scheduled, which might affect the financial markets. However, on Wednesday morning, at 08:25 GMT ECB President Draghi should give a speech. The speech given by a central bank's head might cause a surge or decline of the yellow metal, if the run to or from the currency is large. Although, that scenario is highly unlikely.
XAU/USD continue to move horizontally
In line with expectations, the rest of the previous trading session the yellow metal spent in a relatively flat movement against the US Dollar. The pair did not resume the surge, but it also did not manage to sneak through a combination of the 200-hour SMA and the weekly PP at 1,284.70.
Nevertheless, a steady movement to the bottom seems the most viable scenario, as the bullion has entered in a little short-term descending channel.
On the other hand, an aggregate of technical indicators on the 1D timeframe sends an opposite signal, warning that the above support level might be too strong to be so easily bypassed.
Hourly Chart
By looking at the larger picture on the daily chart, one can observe that the metal's price has not reached the upper trend line of the long term ascending pattern. However, various analysts might draw the pattern differently. Due to that reason careful decision making should be the top choice at the moment.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy are slightly bearish, as 54% of open positions are short. Meanwhile, trader set up pending commands are 55.64% bullish.
OANDA Gold traders are almost neutral, as open positions are 51.70% short. In addition, SAXO bank traders also remain close to being neutral, as 52.67% of open positions are short.