- SWFX traders are 53% bullish
- 50% of pending orders in 500-pip range are set to BUY the gold
- Pair bypasses weekly R1 at 1.269.58
- Upcoming Events: US Advance GDP q/q, Revised UoM Consumer Sentiment
Due to ECB meeting, the Dollar appreciated against all major currencies, including the yellow metal yesterday. Such changes led to dissolution of a recently formed junior ascending channel and simultaneously gave the pair a chance to finally reach the bottom boundary of a dominant channel up.
The European Central Bank held its key interest rate unchanged at 0.00%, as widely expected. The Bank also announced that it aims to start the exit from the QE program in a very cautious way, without seeing the strengthening of the Euro. Moreover, interest rate levels are unlikely to be moved until much later when the asset-buying program ends. As there was no the specific date mentioned, the rates could stay on hold at least for the year from now.
US Advance GDP
At 12:30 GMT traders are advised to follow a release of the US Advance GDP, which is expected to decrease from initial 3.1% to 2.6%. The Dukascopy Research will be covering this event at the research webinar.
XAU/USD slips below weekly S1
After making a breakout from the falling wedge formation, the yellow metal was expected to continue the surge at least until the clash with 200-hour SMA. However, a plunge in Euro amid the ECB meeting led to downfall of the exchange rate. As a result, it has finally slipped below the weekly S1 located at the 1,269.58 mark. Such outcome simultaneously signified dissolution of the junior ascending channel and increased probability of a contact with combined support formed by the 200-day SMA and the bottom trend-line of the dominant ascending channel. In fact, on hourly chart at the moment there are no technical barriers between the above barriers and the exchange rate. However, a release of the US Advance GDP might alter this scenario and restore the value of gold.
Hourly Chart
In result of a notable plunge, the pair left a one-month long ascending channel instead of making a second reaction low. On the other hand, such outcome allowed the pair to finally slip below the weekly S1 and clear the path to the bottom edge of a dominant ascending channel and the 200-hour SMA. A release of the US Advance GDP might provide an additional stimulus to reach this target by the end of the day.Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 53% of open positions are long. Accordingly, 53% of pending commands are to buy the commodity.
OANDA traders are bullish, as 70% (+2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (+2%) of open positions are long.