- SWFX traders are 56% bullish
- 83% of pending orders in 500-pip range are set to SELL the gold
- Gold price drop by 1.1%
- Upcoming Events: Empty Day
On Friday, the pair lost 1.1% in value in result of sale of four million ounces of gold just in ten minutes. If the bullion manages to recover today, that will confirm existence of symmetrical triangle pattern. Otherwise the pair is expected to continue moving to the south towards the bottom edge of a large channel up.
The RBNZ pushed the Kiwi higher, when saying that the fiscal stimulus from a new government as well as weaker currency are likely to result in a faster inflation growth and earlier rate increase. Meanwhile, the key interest rate remained unchanged at 1.75%. According to the Bank's projections, next rate hike is more likely to be made in H2 of 2019, three months earlier than anticipated before, as changes in government and broader economic policy could boost economic growth.
Silent Monday
There will be no fundamental data releases that might notable shaken the given exchange rate today.
XAU/USD falls by 1.1%
The exchange rate dropped by almost 1.1% on Friday in result of 10 minutes trade that moved about 4 million ounces of the precious metal. Nevertheless, the drop was generally anticipated, as it illustrated a breakout from the rising wedge formation on daily chart. In any case, there are two main options for further movement of the pair. As majority of traders remain bullish on the pair, they might try to elevate it to the pre-fall 1,283.90 level. However, the fact road to the north is obstructed by the weekly PP and the 200-hour SMA as well as the 61.8% retracement level and the monthly PP, the pair is likely to form either a flag or pennant pattern and then resume the downfall. Such scenario would also be in line with trade pattern theory.
Hourly Chart
On daily chart the exchange rate made a breakout from the rising wedge formation. For this reason, the pair is expected to move to the bottom until a clash with the bottom edge of another minor ascending channel.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 56% of open positions are long. Accordingly, 56% of pending commands are to buy the commodity.
OANDA traders are bullish, as 73% (+2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 57% (+1%) of open positions are long.