- SWFX traders are 56% bullish
- 57% of pending orders in 500-pip range are set to BUY the gold
- Gold price breaks below 1,246.74
- Upcoming Events: US CPI, Crude Oil Inventories, Federal Funds Rate
In light of the upcoming FOMC meeting he buck continued to appreciate against the yellow metal yesterday. Although bullish sentiment has slightly increased the northern side still contains too many technical barriers in order to allow deep surge.
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.
FOMC meeting
At 19:00 GMT will happen the most awaited event of this month when the FOMC will announce its decision on the interest rate hike to 1.50% from 1.25%. Theoretically it should case a strong appreciation of the. However, the fact that majority of pending orders are set to buy suggests that we might see a turnaround.
XAU/USD still trades near 55-hour SMA
Due to anticipation of the upcoming decision on the interest rate hike, the exchange rate continued to move horizontally between the 55-hour SMA and the monthly S2 from the top as well as the 50% Fibonacci retracement level and the weekly S1 from the bottom. Until release of data on the American inflation the rate is expected to continue its steady movement around the 1,244.00 mark. Subsequently, the pair might temporarily surge to the 100-hour SMA located near the 1,250.00 level. However, the fact that southern side is practically barrier-free and the rate is fluctuating in a two-week long descending channel suggests that the further advance to the top is unlikely.
Hourly Chart
In line with expectations, the exchange rate continued to fluctuate between the 50% retracement level and the monthly S2. 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 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 63% (+1%) of open positions are long.