- SWFX market sentiment is 72% bullish
- Pending orders in the 1000-pip range are set to buy in 71% of cases
- Gold plummeted down on Friday
The gold charts were reviewed on Friday. Although, the junior pattern was broken a couple of hours after the review. Note that the bullion had reached the 1,235.00 level due to the breaking of a junior pattern.
Latest Fundamental Event
The oil price has depreciated after the US Crude Oil Inventories data release on Wednesday at 15:30 GMT. The one-minute candle lost 26 pips, or 0.50% right after the data release. In the next minutes, the rate was trading at the 52.40 level against the US Dollar.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of negative 1.2M, compare to forecasted negative 3.0M.
Andrew Lipow, the President of Lipow Oil Associates in Houston said, "The market is disappointed that the EIA did not confirm the 10 million-barrel crude oil inventory draw we saw in the API statistics yesterday and as a result the crude oil price has come off,".
No more data until Wednesday
This week's trading is at its end. Next notable data release will be next Wednesday,However, note that on Monday at 12:00 GMT Dukascopy Analytics will host the weekly Economic Calendar analysis
XAU/USD short term forecast
Gold has plummeted below a junior pattern's lower trend line. This way it has signalled that the rate is set to reach the dominant support level at the 1,234.00 level
Hourly Chart
Look at the medium term ascending pattern. It could guide the metal up to the 1,260 levels.Although, the surge will be slowed down by the resistance of the 200-day simple moving average, which was approaching the metal's price. Most likely the rate will meet the SMA near the 1,255.00 level.
Daily Chart
Large proportion of buy orders
On Friday, 72% of trader open gold positions on the Swiss Foreign Exchange were long.
Meanwhile, trader pending orders in the 1000-base point range were set to buy in 73% of cases.