- Market sentiment remains 52% bullish
- 51% of pending orders in 1000-pip range are set to BUY Gold
- Cover of important data releases starts at 12:00 GMT
The yellow metal had declined down below the 1,300 mark on Wednesday. The commodity price had bounced off a support cluster and encountered a significant resistance level. The facts combined were indicating that the price was about to be squeezed in.
The Census Bureau simultaneously released two data sets, where Durable Goods Orders data came out lower-than-expected of negative 1.7%, which was one of the main reason for currency price to weaken.
In the contrary, Core Durable Goods Orders came out better-than-expected of 0.9%, which didn't let the EUR/USD currency pair to weaken too much, leaving the overall price fluctuations flat.
Two data releases at 12:00 GMT
Wednesday's trading session is set to be the second busiest of the week. Dukascopy Analytics are expecting notable volatility increases during the release of three macroeconomic data sets.
First and most important will be the time starting from 12:00 GMT to 12:30 GMT, as the ADP Non-Farm Employment data will be released at 12:15 GMT and the US Preliminary GDP at 12:30 GMT. Dukascopy will have two analysts covering the releases live on the bank's webinar platform.
In addition, later in the day at 13:50 GMT the coverage of the Bank of Canada Rate Statement will take place. However, this release is set to only influence Canadian Dollar pairs.
Gold lingers near 1,300
The XAU/USD exchange rate has remained stable for the second consecutive day. Tuesday's trading session showed larger volatility if compared with the preceding day, but the price nevertheless remained near the 1,300.00 area.
Gold has once again approached the upper boundary of a seven-week channel and it seems that it might be ready to make a breakout north. However, technical indicators suggest that bears could take over the market today
This could likewise be confirmed by the fact that Gold breached the support of the 55– and 100-hour SMAs early today.
In case the 200-hour SMA at 1,295.00 is breached, a fall should continue until the senior channel and the 61.80% Fibo retracement at 1,285.00. Conversely, gains are likely to be capped at 1,315.00.
Hourly Chart
As it was expected by watching the daily chart, the 1,300 mark did provide resistance. However, there is a more notable important fact on the daily chart.
Namely, the 200-day SMA stopped the surge, which followed the breaking of the 1,300 cluster. Moreover, the 1,300 cluster began to provide support on Friday. If the 200-day SMA at 1,307.50 would get passed, the 1,315 level would be targeted next.
Daily Chart
Swiss traders remain bullish
SWFX market sentiment remains unchanged and bullish for the fourth consecutive session with 52% of traders holding long positions in this session. However, this is a decline from 53% previously.
Meanwhile, pending commands have become neutral. Previously 56% of them were long, as traders were preparing for a break out from a long term descending channel.
OANDA traders remain largely bullish, as 66% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 69% long positions.