- SWFX market sentiment is 73% bullish
- Pending orders in the 1000-pip range are set to buy in 57% of all cases
- US data sets at 12:30 GMT
All action of the yellow metal on Thursday was focused around the pivot point at 1,195.60. If that support level gets passed, the metal will have no technical support as low as 1,166.00 level. Meanwhile, the SMAs at 1,200 were the only resistance to the metal.
On Wednesday, the US Federal Fed funds rate hike occurred. The full review of the event will be available in the fundamental analysis section with the recording of the live cover webinar in the near future.
US data cover webinar at 12:20 GMT
Although the US Federal Funds rate hike already occurred on Wednesday, the week is not over for release traders.On Thursday, the US Durable Goods Orders, Core Durable Goods Orders and Final GDP will be published at 12:30 GMT. The event will be covered by Dukascopy on the bank's live webinar platform. The cover will begin at 12:20 GMT.
In addition, note that heads of central banks are set to give speeches during the day. Mario Draghi at 13:30 GMT. Jerome Powell at 20:30 GMT, and the head of the Bank of Canada at 21:45 GMT.
Moreover, macroeconomic data release traders need to take into account that there will be more releases on Friday. At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
XAU/USD short term forecast
In regards to the near term future, the three simple moving averages that surround the psychological level of 1,200.00 are set to move lower and push the commodity price through the support of a pivot point that has kept the price higher for more than a week at 1,195.60.
On the other hand, the SMAs might fail and then the metal will jump above the 1,210.00 mark.
Hourly Chart
The daily chart strengthens the hypothesis of a decline. Namely, the 55-day simple moving average was approaching the commodity price. If it once more proves its strength, the rate will plummet down to the Fibonacci retracement level at the 1,176.29 level.
Daily Chart
Long position proportion increases
On the Swiss Foreign Exchange 72% of traders are long on gold. Previously, 70% were long.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions. Namely, 59% of all trader set up orders are set to buy the metal under various conditions.
The rate hike has not changed the opinion of the yellow metal's traders. Moreover, all of the technical signals are being ignored by them.