- SWFX traders are 53% bullish
- 57% of pending orders in 500-pip range are set to SELL the gold
- Pair finds support near 1,275.00
- Upcoming Events: US Non-Farm Employment Change, Average Hourly Earnings, Unemployment Rate, ISM Non-Manufacturing PMI, Trade Balance, Factory Orders
Contrary to expectations, the new Fed Chair announcement did not cause great volatility in the marks. In fact, the pair has formed a symmetrical triangle pattern, which is likely to cease to exist after the massive American data release.
The Federal Reserve announced that it kept key interest rates unchanged and pointed to strong US economic expansion and better labour market conditions, as recent hurricanes had only short-term impact on economic activity. The Bank's policymakers kept their encouraging stance, when acknowledging that consumer price growth was still soft, but did not lowered their evaluations of pricing expectations.
US Employment Change
Today will be marked by release of a package of the American data. The first part will be revealed at 12:30 GMT and will consist of the Non-Farm Employment Change, Average Hourly Earnings, Unemployment Rate, while the second one will happen at 14:00 GMT when the ISM will update the Non-Manufacturing PMI.
XAU/USD forms symmetrical triangle
In result of the previous trading session, the exchange rate has formed symmetrical triangle pattern. A combination of the 55-, 100- and 200-hour SMAs in conjunction with the weekly PP located at 1,274.00 suggests that the pair most probably is going to make a breakout in the upward direction. On the other hand, that side also contains a combined resistance set up by the 61.8% Fibonacci retracement level and the updated monthly PP 1,279.41. For this reason, the fully-fledged breakout most probably will be postponed until release of information on the American employment change and change in salaries. There is a need to take into account that on daily chart the pair has formed an ascending triangle pattern, which implies the further appreciation of the yellow metal against the buck.
Hourly Chart
On daily chart the pair continues to fluctuate below the 100-day SMA and the 61.8% Fibonacci retracement level, which together form the upper resistance line of an ascending triangle pattern. From this perspective, the rate is expected to make a breakout to the top. However, if the released data will justify expectations, bears are likely to drag the pair to the bottom.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 52% of open positions are long. Accordingly, 52% of pending commands are to buy the commodity.
OANDA traders are bullish, as 73% (+3%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 56% (+0%) of open positions are long.