- SWFX market sentiment is 75% bullish
- 60% of pending orders in 1000-pip range are set to SELL Gold
- No data releases until Wednesday
One high level after another, that is the move of the bullion since Friday. On Tuesday, the metal reached for the 1,215.00 mark. It was only being slowed down by the upper trend line of a medium term pattern.
The Census Bureau released US Core Durable Goods Orders data that came lower-than-expected of 0.2%,compared with the forecasted 0.5% . The data release showed traders that the change in the total value of new purchase orders placed with manufacturers for durable goods was lower than expected this time.
Jerome Powell, the chairman of the Federal Reserve said: " I see the current path of gradually raising interest rates as the [Federal Open Market Committee's] approach to taking seriously both of these risks, while inflation has recently moved up near 2%, we have seen no clear sign of acceleration above 2%, and there does not seem to be an elevated risk of overheating."
First notable data of the week will be on Wednesday
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
On the same day the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
XAU/USD reaches above 1,210.00
Gold prices have reached new high levels during the second half of Monday's trading session. During the surge the rate reached above the 1,210.00 mark.
However, the surge was stopped by the upper trend line of a long term ascending channel pattern. The pattern with it received another confirmation of its borders.
On Tuesday morning the commodity price was consolidating its gains near the 1,210.00 mark by trading sideways. Meanwhile, the rate had no close by resistance or support level.
Although, note that the 55-hour simple moving averages was approaching the metal's price. The SMA most likely will push the metal higher.
Hourly Chart
Two descending patterns can be observed on the daily chart. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
By the end of August the junior pattern was broken, as it was expected and should have occurred in consistence with the larger pattern. As a result, a surge was going on, which was hindered by the 1,200.00 and 1,210.00 levels.
In general, the bullion no longer has any resistance. The commodity price is heading for the 1,235 mark, which it should reach by the middle of September.
Daily Chart
Markets remain largely bullish
75% of SWFX market traders are going long on the pair. The sentiment increased by three percent on Tuesday.
Meanwhile, the proportion of buy orders of total set up orders has decreased from 63% on Monday to 57% on Tuesday.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 78% of traders are long. Likewise, SAXO Bank traders were 71% long on the yellow metal's price.