- SWFX market sentiment is 74% bullish
- Pending orders in the 1000-pip range are set to buy in 81% of cases
- US Producers Price Index ends the week
Gold continues to decline. Meanwhile, note that the chart has been redrawn. Namely, small scale patterns have been added.
Latest Fundamental Event
Previously, oil prices increased volatility during the release of the US Crude Oil Inventories last Wednesday at 14:30 GMT. The one-minute candle gained 27 pips, or 0.41% right after the data release. In the next minutes the rate was trading at the 66.30 level.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of 3.2M, compare to forecasted 3.6M.
Fatih Birol, the Executive Director of the International Energy Agency said: "One is high oil prices, and in many countries, they're directly related to consumer prices. The second one is global economic growth momentum slowing down".
US PPI at 13:30 GMT
On Friday, at 13:30 GMT US Producers Price Index will be out. The event will be covered by Dukascopy Analytics on the webinar platform.XAU/USD short term forecast
Gold charts have been reviewed. New patterns have been discovered. In general, the metal is going down. Namely, the commodity price is trading in two channel down patterns in the borders of a large scale ascending pattern.
In the near term future, the pair is set to decline in the smallest pattern down to the 1,213.85 level, where it should encounter the support of a monthly pivot point.
Hourly Chart
On the daily chart the last couple of trading sessions have experienced low volatility in the borders of the ascending channel pattern.
Most likely the situation will remain unchanged until the 55-day simple moving average approaches and provides additional support to the commodity price and sends it up to the next resistance level.
On this chart the closest resistance level is located at the 1,245.00 level. At that level the 38.20% Fibonacci retracement level is located at together with a monthly pivot point and the upper trend line of the ascending pattern.
Daily Chart
Massive amount of buy orders
Since Thursday, already 74% were long. The data clearly indicated that the gold bulls don't care about the decline.
Meanwhile, in the 1000 base point range 81% of trader set up orders were set to buy. It means that traders will buy gold when it rebounds or reaches a certain low level.