- SWFX traders are 54% bearish
- 55.34% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,283.40
- Upcoming Events: Quiet Monday
The yellow metal has hit the 1,300 mark, as it was expected throughout last week. It can be expected that the metal will begin a short lived period of consolidation, as the reaching of the 1,300 mark was also a confirmation of the upper trend line of the medium term ascending channel pattern.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
A day off for Swing Traders
On Monday there are no notable data releases scheduled, which might affect the financial markets. Moreover, Tuesday's trading session also seems to be almost empty. However, on Wednesday morning, at 07:00 GMT ECB President Draghi will give a speech.
XAU/USD slips to 1,286.08
After reaching the northern boundary of a one week long ascending channel the yellow metal made a rebound and started to decline against the American Dollar until the pair found a support set up by the 100-hour SMA.
At the moment, the pair is fluctuating around the updated weekly PP near 1,284.70, simultaneously being squeezed between the 55-hour SMA from the top and the above 100-hour SMA from the bottom.
Today the bullion is expected to resume the surge. Firstly, because it is continues to move in two ascending channels. Secondly, because the southern path is also secured by the 200-hour SMA and the 61.8 Fibonacci retracement level at 1,278.96.
Hourly Chart
By looking at the larger picture on the daily chart, one can observe that the metal's price has not reached the upper trend line of the long term ascending pattern. However, various analysts might draw the pattern differently. Due to that reason careful decision making should be the top choice at the moment.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 54% of open positions are short. Meanwhile, trader set up pending commands are 55.34% bullish.
OANDA Gold traders are almost neutral, as open positions are 51.49% short. In addition, SAXO bank traders also remain close to being neutral, as 51.90% of open positions are short.