- SWFX market sentiment is 74% bullish
- 55% of pending orders in 1000-pip range are set to SELL Gold
- No data impacting gold
The previously drawn junior pattern of the hourly chart has managed to break the upper trend line of another pattern. Although, the move was expected, as the metal is surging after encountering a massive scale pattern's lower trend line.
The Energy Information Administration released Crude Oil Inventories data that came better-than-expected of 6.8 Million to forecast –2.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Kevin Nicholson, the chief market strategist at RiverFront Investment Group said: "Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017".
Nothing impacting the bullion
The two first empty trading session of the week are over. Macroeconomic data will be once more released and cause sudden bounced in the financial markets. However, they will not influence the US Dollar.
At 12:30 GMT the Canadian Retail Sales will be published. This data release is expected to cause a widening of the trading range of 70 base points. The data release will be covered by Dukascopy Analytics on the bank's live webinar. The event will start at 12:20 GMT.
Moreover, there will be another notable data release occurring during the day. At 14:30 GMT the US Crude Oil Inventories data will be published. The data has caused fluctuations of at least 50 cents in oil prices throughout this summer. The release cover by Dukascopy Analytics will begin at 14:20 GMT.
XAU/USD depreciates 0.35%
The yellow metal has depreciated 0.35% against the US Dollar starting from 22:00 GMT on Tuesday until 07:00 GMT on Wednesday. The pair tested the bottom boundary of the trend line at 1,192.77 on Wednesday morning.
During Wednesday morning hours, Gold was at 1,197.42, testing the 55-period (4H) and 200-hour SMAs as additional support level to recover itself. In addition, the crossover of the 55 and 200 hour SMAs should be a strong buy signal for traders. It seems that during today's session the yellow metal should try to reach the upper boundary of the junior ascending channel
In general, the main pair shows bullish signals continuing to the retracement of the rally from the monthly low of 1,160.25.
Hourly Chart
The daily chart has been reviewed. Two descending patterns have been discovered. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
In general, the bullion is set to test the resistance levels just above the 1,200.00 mark, which can either hold its ground and force the rate back down or give up. If the resistance levels are passed, the 1,235.00 level will be targeted.
Daily Chart
Markets remain largely bullish
74% of SWFX market traders are going long on the pair.
Meanwhile, pending buy orders have increased in number, as 56% of all trader set up orders are set to buy. This indicates, that the retail traders are preparing to buy even more gold, if resistance levels are passed.
OANDA traders are also bullish on the commodity with 78% of open positions being long today. Meanwhile, SAXO Bank traders were 68% long on the yellow metal's price.