- SWFX traders are 52% bullish
- 67% of pending orders in 500-pip range are set to BUY the gold
- Pair tries to bypass 200-hour SMA
- Upcoming Events: US Unemployment Claims and Pending Home Sales
Wednesday's trading session resulted in a breakout of the exchange rate from the falling wedge pattern. Such outcome suggests that the pair might continue to move in the northern direction. However, in order to do that, it has to gain an upside momentum to pass through resistance near 1,283.85 and 1,284.55.
The Commerce Department showed that the US durable goods rose 2.2% for the month of September, owing to higher demand for transportation equipment. The report supported an upbeat sentiment in the manufacturing industry, as it managed to start recovering after being hit by hurricanes. In addition, the proposed corporate tax cut is likely be one more catalyst providing a stronger footing for growth in the fourth quarter, as well as in the beginning of 2018.
US Unemployment Claims
Contrary to eastern side of the Atlantic, the American continent is not expected to bring any significant news today. The only event that is worth following will be the weekly release of the US Unemployment Claims at 12:30 GMT.
XAU/USD breaks from falling wedge
In result of the previous trading session, the exchange rate made a breakout from the falling wedge formation. The surge was not sharp, as the pair was slowed down by a combination of the 55- and 100-hour SMAs as well as the 61.8% Fibonacci retracement level. In first half of the day the pair is expected to test the 200-hour SMA near 1,284.77. The strength of this moving average most probably will force the pair to temporarily retreat. In larger perspective the yellow metal might notably recover against the buck, as the above breakout simultaneously signified a rebound from the bottom trend-line a one-month long ascending channel. In that case, there the pair is unlikely to reach the support line of a long term dominant ascending channel in the foreseeable future.
Hourly Chart
Yesterday's breakout from the falling wedge formation has finally revealed another medium scale pattern. It appears that over the last couple of weeks the exchange rate was fluctuating in another ascending channel whose lower support line lies practically in parallel with the bottom edge of the dominant ascending channel. From this perspective, the gold might notably advance against the buck in the upcoming weeks.Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 52% of open positions are long. Accordingly, 52% of pending commands are to buy the commodity.
OANDA traders are bullish, as 68% (+2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (+0%) of open positions are long.