- SWFX market sentiment is 73% bullish
- Pending orders in the 1000-pip range are set to sell in 58% of cases
- US Elections take place on Tuesday
On Tuesday, Gold prices had passed the resistance of the 55-hour simple moving average. Due to that reason a surge of the commodity price further higher was expected.
Latest Fundamental Event
Previously, oil prices increased volatility during the release of the US Crude Oil Inventories on Wednesday at 14:30 GMT. The one-minute candle gained 27 pips, or 0.41% right after the data release. In the next minutes the rate was trading at the 66.30 level.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of 3.2M, compare to forecasted 3.6M.
Fatih Birol, the Executive Director of the International Energy Agency said: "One is high oil prices, and in many countries, they're directly related to consumer prices. The second one is global economic growth momentum slowing down".
A quiet week for data releases
All of this week's events, which are worth mentioning, are described below
On Tuesday, the US Congressional Elections are taking place. They will impact all of the financial markets through the US Dollar.
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
XAU/USD short term forecast
From a technical perspective the commodity price si set to surge, as it faces no technical resistance level as high as the 1,242.00 level
Although, take into account that the US Congressional Elections will most likely control the commodity through the strength of the US Dollar.
Hourly Chart
On the daily chart the commodity price continues to surge higher in the borders of a large scale ascending pattern.
On this chart the closest resistance level is located at the 1,245.00 level. At that level the 38.20% Fibonacci retracement level is located at together with a monthly pivot point and the upper trend line of the ascending pattern.
Daily Chart
Long sentiment remains persistent
Traders remain long on gold. Namely, 73% of traders were long on Tuesday.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 66% of all orders are set to buy. Previously, 72% of orders were set to buy gold.