- SWFX traders are 56% bullish
- 75% of pending orders in 500-pip range are set to BUY the gold
- Gold price falls to 1,279.00
- Upcoming Events: US Unemployment Claims, Import Prices, Capacity Utilization Rate, Industrial Production, Philly Fed Manufacturing Index
In result of release of the US macroeconomic data, the exchange rate returned back to the monthly PP at 1,279.41. As this downfall matched with a rebound from the upper edge of an ascending channel, the pair is likely to continue moving to the bottom.
The Labour Department revealed that the US consumer inflation eased to 0.1% from 0.5% in October, while its core figure appreciated to 0.2% in the same period. Relatively strong readings pointed to the end of disinflationary trend, which worried the Fed the most. The report also showed a little slowdown in retail sales growth pace, though stronger consumers spending, including higher real wages and job gains are expected to encourage retailing in the next months.
American manufacturing data
At 13:30 GMT and 14:15 GMT various American institutions will publish different data sets related to manufacturing sector. Taken separately they usually do not cause any notable price movements. However, once they are released together there might appear volatility in the markets.
XAU/USD trades below moving averages
Using support provided by the 55-, 100- and 200-hour SMAs together with the monthly PP, the exchange rate managed to climb to the weekly R1 located at 1,287.92. In other words the pair has practically managed to form the third reaction high of a four-week long ascending channel. However, a release of widely expected American data created a momentum that enabled bears to return the rate back to the weekly PP at 1,277.10. Hence, all four abovementioned support levels turned into resistance. As they are all concentrated around the 1,279.00 mark, it is unlikely that bulls will manage to push the pair through them without new strong upside momentum. There is a need to notice that the similar situation has already happened in beginning of the week when the gold failed to climb upstairs after a solid strengthening of the buck.
Hourly Chart
Yesterday's trading session did not make the situation clearer, as the pair continues to trade at the intersection of a junior ascending channel and upper resistance line, which illustrates two-month long downtrend. Moreover, the pair has stuck between the 100-day SMA as well as the monthly and weekly PP, which points out on the need to wait and see which trend will prevail.
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 72% (+1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (+7%) of open positions are long.