- SWFX traders are 55% bullish
- 75% of pending orders in 500-pip range are set to SELL the gold
- Gold price breaks below 1,246.74
- Upcoming Events: US PPI
Yesterday's trading session did not result in major price movements. The exchange rate simply bounced off from the slipping 55-hour SMA and found new support at the 50% Fibonacci retracement level at 1,240.30.
The Labour Department stated that the US job openings cooled unexpectedly in the month of October from a record-high registered previosly. According to the JOLTS survey, the number of jobs expecting to be filled dropped 181K to 6.00M, following an upwardly revised 6.18M in the prior month. Meanwhile, the number of hirings grew to 5.55M, with the most of increase coming from hitel and restaurants, the health care industry, financial services and manufacturing.
New PPI release
At 13:30 GMT the US Bureau of Labor Statistics will make another update on change in the price of finished goods and services sold by producers. The indicator is expected remained unchanged.
XAU/USD falls to 50% Fibo
In line with expectations, the falling 55-hour SMA did allow the bullion to recover against buck. As a result, the rate was forced to find support at the 50% Fibonacci retracement level located at 1,240.30. In early hours of this trading session bulls made another attempt to inch the price of yellow metal higher. But this endeavor is expected to fail as well due to combined resistance barrier formed by the above 55-hour SMA and the monthly S2 at 1,246.74. Accordingly, the bearish momentum is likely to continue at least until the Fed meeting that will happen tomorrow. An aggregate of technical indicators supports this scenario via sending sell signal for the rest of the day.
Hourly Chart
In line with expectations, the exchange rate made a rebound from the 50% retracement level simultaneously fluctuating in a junior descending channel. In larger perspective, the pair is expected to continue moving downwards within boundaries of a senior descending channel. However, whether this scenario materializes will heavily depend on the upcoming Fed meeting and decision on the interest rate hike.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally 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 71% (-3%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 62% (-2%) of open positions are long.