- SWFX market sentiment is 74% bullish
- 53% of pending orders in 1000-pip range are set to SELL Gold
- US GDP at 12:30 will influence markets
After making another attempt to pass the resistance of the ascending pattern on the hourly chart, the yellow metal plummeted down to the 1,200 mark. At that level the 100-hour simple moving average managed to hold its ground and push the metal higher.
The Census Bureau released US Core Durable Goods Orders data that came lower-than-expected of 0.2%, compared with the forecasted 0.5%. The data release showed traders that the change in the total value of new purchase orders placed with manufacturers for durable goods was lower than expected this time.
Jerome Powell, the chairman of the Federal Reserve said: " I see the current path of gradually raising interest rates as the [Federal Open Market Committee's] approach to taking seriously both of these risks, while inflation has recently moved up near 2%, we have seen no clear sign of acceleration above 2%, and there does not seem to be an elevated risk of overheating."
US GDP at 12:30 GMT and Crude Oil at 14:30 GMT
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
Later on the weekly US Crude Oil Inventories data will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
XAU/USD retraces back to 1,200.00
The gold price has decreased to the 1,200.00 mark on Wednesday morning. The price decrease occurred due to Tuesday's s price drop of 1.07% due to the US and Mexico making a trade agreement, which strengthened the US Dollar.
The 55-hour SMA passed the rate during Tuesday's session and took a role of resistance for the rate. The 100-hour SMA is playing support. The rate is located among the 55—hour and the 100-hour SMA's during Wednesday session. It is expected that the 55– hour and the 100-hour SMA's will squeeze the pathway which will force the rate to go upwards or downwards.
The XAU/USD is facing upsurge during a couple of weeks now. It is expected that the price surge will continue if the fundamental news will not break the pattern.
Hourly Chart
Two descending patterns can be observed on the daily chart. 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.
By the end of August the junior pattern was broken, as it was expected and should have occurred in consistence with the larger pattern. As a result, a surge was going on, which was hindered by the 1,200.00 and 1,210.00 levels.
In general, the bullion no longer has any resistance. The commodity price is heading for the 1,235 mark, which it should reach by the middle of September.
Daily Chart
Markets remain largely bullish
74% of SWFX market traders are going long on the pair. The sentiment remained almost unchanged since Tuesday.
Meanwhile, the proportion of buy orders of total set up orders is back above the 60% mark, as on Wednesday 61% of trader set up orders were set to buy.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 76% of traders are long. Likewise, SAXO Bank traders were 70% long on the yellow metal's price.