- SWFX market sentiment is 75% bullish
- Pending orders in the 1000-pip range are set to buy in 53% of cases
- US data incoming at 13:30 GMT
After pausing and consolidating the yellow metal has resumed its surge up to the levels near the 1,230 mark. Meanwhile, note that all of the resistance levels that the metal faces are short term. The large scale chart shows a surge that is set to continue.
Latest Fundamental Event
Last Thursday, the Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 10.3M, compare to forecasted 2.9M.
"The Saudis feel they were completely snookered by Trump. They did everything to raise supplies assuming Washington would push for very harsh Iranian sanctions. And they didn't get any heads up from the U.S. that Iran will get softer sanctions," said one senior source briefed on Saudi energy policies.
US Durable Goods Orders at 13:30 GMT
On Wednesday, the US statisticians will publish the US Durable Goods Orders and Core Durable Goods Orders data sets at 13:30 GMT.In addition, at 15:30 GMT the US Crude Oil inventories data release will be published.
Meanwhile, note that the second notable fundamental data release day of the week will be Friday. At 13:30 GMT the Canadian CPI and Core Retail Sales data will be published.
All of these data releases can be watched live on the Dukascopy Webinar platform and the Dukascopy Webinars YouTube channel. Join ten minutes before the event to see the cover.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade sideways to remain at the 1,220.00 level during the trading session on Wednesday.
On the other side, the yellow metal could pass through the support of the 100-hour simple moving average at 1,220 to trade at the 1,215.00 level.
Hourly Chart
The surge on the daily chart appears to be consolidating after five consecutive trading sessions of gains from 1,200 to 1,220.
It is expected to resume the surge up to the resistance cluster at the 1,245 level, where the monthly R1 are located together with a 38.20% Fiboancci retracement level.
Daily Chart
Traders remain long
On Wednesday, 75% of traders remained long, as they were taking advantage of the recent surge of the yellow metal's price.
Meanwhile, in the 1000 base point range trader set up orders are set to buy in 52% of all cases. The sentiment has remained almost neutral since Friday.
Traders have remained long on the yellow metal since Friday, when even short term traders joined the gold holders and opened long positions.