- SWFX traders are 58.70% bearish
- 52% of pending orders in 800-pip range are set to SELL
- Pair formed junior channel down
- Upcoming Events: US Average Hourly Earnings, Non-farm Employment Claims, Unemployment Rate
During the previous trading day the bullion gained 1.3% in value against the buck. In the result of the surge and subsequent rebound, an existence of a junior descending channel became evident. So, today the pair is expected to continue to slide downwards at least until the weekly R3 at 1.316.51
The Commerce Department reported that the US economy expanded at a faster-than-expected yearly pace of 3.0% in the Q2. The country's GDP growth marked the strongest reading in more than two years, nearing Donald Trump's target. A rise was led by higher consumer spending and business investment, which could be further translated into a stronger path in the Q3 to dampen possible effects of Hurricane Harvey.
All eyes on employment data
In the first day of autumn traders can observe a regular release of a set of the US employment data, consisting of the Average Hourly Earnings, Unemployment Rate and Non-farm Employment Claims. The latter has the greatest significance, as it gives more actual picture of the American labour market than the lagging Unemployment Rate. All three indicators will be announced at 12:30 GMT and will be covered by the Dukascopy Research Team.
XAU/USD surges to 1,323.00
As soon as the buck stopped to receive feeding from various macroeconomic data releases, the yellow metal started to actively recover. In result of the yesterday's surge, the pair has entered into a junior descending channel. Accordingly, today it is expected to move downwards, successfully breaking through the weekly R3 at 1,316.51.
Nevertheless, the fall is not expected to last for long due to presence of a combined support level set up by the 55- and 100-hour SMAs. On the other hand, there is a need to take into account an effect from release of another fundamental data later this day. If it fails to justify expectations, the weakening buck might push the pair out of the channel in the northern direction.
Hourly Chart
In result of the previous trading session the exchange rate continued to advance in a junior ascending channel, which means that a theory about existence of a rising wedge was not correct. From a daily chart perspective, it seems that that in the upcoming days the gold has to lose some value against the buck in order to slip back to the bottom edge of the pattern.
Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as almost 59% of open positions are short. Expectedly, the same percentage of pending commands is to buy the commodity. Moreover, 43% of pending orders are set to sell the buck.
OANDA Gold traders are neutral, as open positions are 51.50% bearish. In the meantime, SAXO bank traders also remain neutral, as 52.50% of open positions are short.