- SWFX market sentiment is 73% bullish
- 53% of pending orders in 1000-pip range are set to BUY Gold
- Canadian data incoming
The metal continued to trade sideways, by the middle of Wednesday's trading. The previously set forecast continued to last into Wednesday.
For some time there hasn't been relevant data to the commodities sector or to the yellow metal's price. However, you can read further about the latest US Crude Oil Inventories data release, which caused a notable reaction on the charts.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 2.6M, compare to forecasted negative 0.7M. This data release shows the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
Dukascopy Bank SA comments:"The data release was unusual because the reaction on the oil price up immediately was followed by the price drop in the following minutes. The price drop most likely was caused by market participants, who took advantage of the increased liquidity and sold their oil assets."
Canadian data in focus
On Wednesday, only the Canadian government and central bank will release data that will be notable enough for it to be monitored by Forex traders.
Namely, the Canadian Trade Balance will be published at 12:30 GMT and the Bank of Canada will publish their Overnight Rate at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics. The data coverages will begin ten minutes before the data is released, respectively, 12:20 GMT and 13:50 GMT.
Meanwhile, note that most major financial instruments will start suddenly bouncing around on US macroeconomic data releases on Thursday, as the ADP Non-Farm Employment Change will be released at 12:15 GMT and the ISM Non-Manufacturing PMI will be out at 14:00 GMT.
Moreover, it will continue into Friday. On Friday, at 12:30 GMT three US employment data sets will be published.
XAU/USD short term forecast
In regards to the near future, the yellow metal will trade horizontally among the monthly PP at the 1,196.00 mark and the lower trend lines of the descending and ascending patterns during next two trading days.
Eventually, the price should get squeezed between the lower trend line of the larger pattern and the pivot point and break out. Watch for that moment.
Hourly Chart
On the daily chart it can be seen that gold is surging in the borders of a large descending channel pattern. The surge occurred due to the metal bouncing off the lower trend line of the channel down. The commodity price is set now to head for the upper trend line of the pattern.
The commodity price is heading for the 1,230.00 mark, which it should reach by the middle of September. On its way there, it is set to face the 55-day simple moving average, which is heading lower near the 1,225.00 level and the resistance of a 50.00% Fibonacci retracement level near 1,212.00.
Daily Chart
Markets remain largely bullish
73% of SWFX market traders are going long on the pair. The sentiment remained almost unchanged for a whole week.
Meanwhile, pending buy orders indicate that there might be additional buying going on in the future, as 59% of all waiting orders are set to buy the metal.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 74% of traders are long. Likewise, SAXO Bank traders were 72% long on the yellow metal's price.