- SWFX traders are 54% bullish
- 56% of pending orders in 500-pip range are set to BUY the gold
- Gold price reaches 1,257.00 mark
- Upcoming Events: US Unemployment Claims
The buck is continuing to gain value against the gold in a junior falling wedge formation. Today it is expected to test the bottom boundary of a senior descending channel. A rebound is likely to happen.
The US private sector created 190K jobs in November, down strongly from the prior month, but in line with projections, the ADP report indicated, ahead of more comprehensive the US Labour Departments figures to be issued on Friday. Meanwhile, another data showed the revision of the US unit labour costs, which was at an annualised 0.2% rate in the Q3, compared to the initially reported 0.5% rise.
US Unemployment Claims
At 13:30 GMT the US Department of Labor will release information about the number of number of people filed for unemployment benefits over the previous week. Apart from that there are no macroeconomic data releases scheduled for today.
XAU/USD ready to test strength of dominant pattern
In essence, the buck is actively appreciating against the gold the third day in a row. A short-term bullish movement towards the 38.2% Fibonacci retracement level at 1,268.00 was the only exception and was attributed to beginning of drills on the Korean peninsula. But, in general, the pair is driven by optimism over the progress of tax bill. Accordingly, today the rate is expected to continue heading downwards until it makes a rebound from the bottom boundary of a currently active two-month long descending channel near 1,255.00. However, the above market sentiment has a good chance to push the rate even more down. If this breakout happens and the pair gains a foothold below the weekly S2, this might be a sign of existence of another unconfirmed four-month long descending channel.
Hourly Chart
Today the rate is testing the bottom boundary of a four-month long descending channel. Theoretically, a rebound is expected to happen. However, the political news coming from the US indicate that the pair might also make a breakthrough. In that case, we might gain a confirmation about existence of another senior descending channel.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutral on valuation of the gold, as 54% of open positions are long. Accordingly, 54% of pending commands are to buy the commodity.
OANDA traders are bullish, as 72% (+0%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 65% (+1%) of open positions are long.