- SWFX market sentiment is 72% bullish
- Pending orders in the 1000-pip range are set to buy in 61% of cases
- No more data this week
The surge of gold has ended, as the commodity price has declined below the support of the 55 and 100-hour simple moving averages and retraced back down to 1,220.00. Meanwhile, note that the decline might and at the 1,214.00 level, where a strong support cluster on the daily chart is located at.
Latest Fundamental Event
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 4.9M, compare to forecasted 2.5M.
On November 21, US President Donald Trump posted on his Twitter account: "Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! Thank you to Saudi Arabia, but let's go lower!"
No more relevant data this week
There are no mentioning worth data releases scheduled for this week. Join the Weekly Calendar analysis webinar on Monday at 12:00 GMT to see, what is worth looking at on the economic calendar during the week.XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade sideways to stay at the 1,220.00 level during the day. The 100-hour simple moving average will not allow the yellow metal to surge on Friday.
On the other side, the yellow metal could break the resistance of the small descending pattern line at 1,225.00 level to trade at the 1,226.00 level.
Hourly Chart
On the daily chart, the surge seems to be taking a break instead of stopping. As the commodity price descends, it should reveal the range of a medium term ascending pattern. Namely, when it stops falling and starts going up, the low point will be used for drawing a pattern.
Meanwhile, note that gold 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
Sentiment remains largely unchanged
Short term traders did not lose on the recent decline, as the sentiment had become 71% long already on Thursday, compared to the 75% of long positions on Wednesday.
On Friday, the sentiment was largely unchanged, as 72% of traders were long on gold.
Meanwhile, note that traders sold the pair during the decline, as 56% of pending orders were short on Thursday.
On Friday, the situation was the opposite, as 60% of pending orders in the 1000-pip range were set to buy the metal.