- SWFX traders are 53% bearish
- 75% of pending orders in 700-pip range are set to SELL the gold
- Pair fails to return to psychological level near 1,300.00
- Upcoming Events: FOMC Members Dudley, Evans and Kashkari speak
As it was expected, the yellow metal failed to return and break above the strong resistance set up by the monthly PP at 1,300.00. For this reason, the pair is expected to continue to move in the downward direction, fluctuating in a descending channel.
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.
FOMC Members speak
As it usually happens, first day of the week does not bring any notable fundamental events that might interest traders. The only activities that are scheduled in the economic calendar are FOMC Members' Dudley, Evans and Kashkari speeches where they most probably will comment the latest Fed's decision about interest rates and statement about its future policy.
XAU/USD continues to move downwards
In accordance with expectations, the surge of the gold price did not last for long, as the pair was turned around by the monthly PP located at the 1,300.00 level, which transformed from support into resistance. At the moment, there are certain signs that the rate is going to try to climb to the top again. However, this new attempt is expected to fail due to presence of the 55- and 100-hour SMAs plus the updated weekly PP, which altogether additionally strengthen the above resistance level. In addition to that, the further deprecation of the bullion against the gold is expected from a daily perspective, as the rate is fluctuating in a junior descending channel, which forms a part of a larger long-term ascending channel.
Hourly Chart
From a daily perspective, continuous appreciation of the buck against the gold remained completely 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 53% of open positions are long. In the meantime, SAXO bank traders are also neutral, as 57% of open positions are long.