- SWFX traders are 53% bearish
- 52% of pending orders in 1000-pip range are set to BUY the gold
- Pair returns to psychological support near 1,300.00
- Upcoming Events: Quiet end of the week
In line with expectations, the pair made a rebound from the bottom edge of a senior pattern and resumed the surge. Nevertheless, the rate is not expected to break above the area between the 1,300.00 and 1,302.50 levels, as it presents a location of a number of technical indicators.
The US Labour Department stated that the number of Americans filing for unemployment benefits dropped unexpectedly to 259K last week, suggesting that the hurricanes-related increase continued to reverse. The next move in the pair was set by the ECB President Mario Draghi comments on the banking sector risks, while avoiding to provide any hints on the Bank's monetary policy changes decision.
Day of silence
The last day of this trading week will bring a number of important insights about the Euro Zone as well as the Canadian economy. In the meantime, there are no scheduled macroeconomic events related to the United States, which means that the price of gold today is likely to driven only on a technical basis.
XAU/USD returns to 1,300.00 mark
A suggestion expressed yesterday was basically confirmed. The yellow metal indeed continued to lose value against the buck. The only exception was that it made a rebound not from the weekly S3 but a little bit earlier from the bottom trend-line of a senior descending channel. However, a recovery of the gold is not expected to last for long today. Most probably, the pair is going to make another turn around somewhere between the 1,300.00 and 1,302.35 levels, as this area represents a location of multiple technical indicators, such as the monthly PP, weekly S2 and the 55-hour SMA. An aggregate of those indicators supports this assumption via sending strong sell signal.
Hourly Chart
From a daily perspective, yesterday's appreciation of the buck against the gold was fully in line with the junior descending channel that represents a part of a larger dominant channel up. The next likely target for the pair would be a combination of the 55-hour SMA and the 61.8% Fibonacci retracement level at 1,278.96.Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as 53% of open positions are short. In the meantime, 53% of pending commands are to buy the commodity.
OANDA Gold traders remain neutral, as only 54% of open positions are long. In the meantime, SAXO bank traders are also neutral, as 54% of open positions are long.