- SWFX traders are 55% bullish
- 65% of pending orders in 500-pip range are set to BUY the gold
- Gold tries to reach monthly R1 at 1,298.04
- Upcoming Events: Empty Monday
Due to concerns over successful vote on the new tax reform, the gold inched to the top, trying to reach the monthly R1. After losing steam, the pair is expected to return back to the weekly PP located at the 1,287.22 level.
The Commerce Department said that the US homebuilding rose to the highest level of the year in October, where housing starts jumped 13.7% to a seasonally adjusted yearly rate of 1.29M units, while building permits added 5.9% to a 1.30M unit rate in October. Strong figures were expected to contribute to stronger economic expansion in the US over the course of the Q4.
Empty Monday
There are no macroeconomic data releases scheduled for today.
XAU/USD relentlessly tries to reach monthly R1 at 1,298.00
Despite release of better than expected American housing data the bullish pressure prevailed. To certain extent, the surge was supported by a combination of the 55-, 100- and 200-hour SMAs in conjunction with the monthly PP. However, the fact that the pair managed to break through the upper boundary of medium-term ascending channel and practically reach the monthly R1 at 1,298.01 suggests that traders were also concerned about discussion and vote on the new tax reform plan. At the moment, it is too early speak about dissolution of the above pattern, as it is possible to simply adjust its boundaries. In that case, the exchange rate is expected to start moving in the opposite direction and trying to reach the weekly PP at 1,287.22, which soon will become additionally strengthened by the rising 55-hour SMA.
Hourly Chart
Despite adjustment of boundaries of the currently active ascending channel, the pair is still expected to make a rebound and start moving to the bottom. However, there is a second option, in the rate might move more or less horizontally and make a fully-fledged rebound after clashing with the monthly R1.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 55% of open positions are long. Accordingly, 55% of pending commands are to buy the commodity.
OANDA traders are bullish, as 66% (-5%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 53% (-5%) of open positions are long.