- SWFX market sentiment is 71% bullish
- Pending orders in the 1000-pip range are set to buy in 57% of cases
- Canadian data on Friday
The yellow metal has reached a new high level. Namely, the 1,230.00 mark. The surge was expected to continue on both smaller and larger scale charts.
Latest Fundamental Event
Last Thursday, the Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 10.3M, compare to forecasted 2.9M.
"The Saudis feel they were completely snookered by Trump. They did everything to raise supplies assuming Washington would push for very harsh Iranian sanctions. And they didn't get any heads up from the U.S. that Iran will get softer sanctions," said one senior source briefed on Saudi energy policies.
Only Canadian data is worth mentioning
There are no mentioning worth data releases scheduled for Thursday. However, there is still a data release to wait for this week.Note that on Friday at 13:30 GMT the Canadian CPI and Core Retail Sales data will be published.
The data release can be watched live on the Dukascopy Webinar platform and the Dukascopy Webinars YouTube channel. Join ten minutes before the event to see the cover.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will meet the upper boundary of the ascending pattern line at the 1,230.50 mark. The 55-hour and the simple moving average will support the yellow metal during the session.
On the other side, the yellow metal could bounce off the upper boundary of the ascending pattern line at the 1,230.50 to trade downwards to the 1,226.00 level.
Hourly Chart
The surge on the daily chart seems to be resuming, as it is no longer touching the 1,220 level.
It is expected to resume the surge up to the resistance cluster at the 1,245 level, where the monthly R1 are located together with a 38.20% Fiboancci retracement level.
Daily Chart
Traders remain long
On Wednesday, 75% of traders remained long, as they were taking advantage of the recent surge of the yellow metal's price.
Although, as the metal touched the 1,230 level the short term long traders have closed their long positions, as 71% of traders were long on Thursday.
Meanwhile, in the 1000 base point range trader set up orders are set to sell in 56% of all cases. Previously the orders were neutral for almost a week.