- SWFX market sentiment is 74% bullish
- Pending orders in the 1000-pip range are set to sell in 56% of cases
- US Employment data at 13:30 GMT might impact gold prices
The resistance at 1,241,40 has been pierced. Although, after the event the currency exchange rate declined to look for additional support in the 55-hour simple moving average before making another attempt to surge.
Latest Fundamental Event
The Automatic Data Processing, Inc. released the US ADP Non-Farm Employment Change data that came out lower than expected of 179K, compare to forecasted 195K.
Ahu Yildirmaz, the Vice President and Co-Head of the ADP Research Institute said, "Although the labor market performed well, job growth decelerated slightly. Midsized businesses added nearly 70 percent of all jobs this month. This growth points to the midsized businesses' ability to provide stronger wages and benefits. It also suggests they could be more insulated from the global challenges large enterprises face."
US Employment data sets at 13:30 GMT
Last but not least this week will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will be covered by Dukascopy Analytics.XAU/USD short term forecast
The yellow metal managed to pass in the resistance levels just above the 1,240.00 level and score a new high level during the second half of Thursday's trading session. However, after the surge it retreated back down to look for support in the 55-hour simple moving average.
The SMA provided the needed support and forced the rate into another attempt to surge above the resistance level at 1,241.40, 1,243.47 and 1,245.07. It was expected that eventually the metal's price will pass these levels and reach for new high levels.
On the other hand, the commodity price might trade sideways until the 100-hour simple moving average catches up to the commodity price and pushes the metal higher.
Hourly Chart
From the daily chart the surge was expected for quite some time. Although, that is not the most important thing to note on the chart.Look at the medium term ascending pattern. It could guide the metal up to the 1,260 levels once the resistance levels just above the 1,240.00 mark are broken.
Daily Chart
Traders remain long
As the week's trading ended, the traders of Dukscopy on the Swiss Foreign Exchange were riding the surge of the gold prices. Namely, 74% of open positions were long by the middle of the day's trading session.
On Thursday, those orders were executed, as pending orders in the 1000-base point range were balanced 50/50 buy versus sell orders.
By the middle of Friday's trading the neutrality in the orders was gone and sell orders dominated. 58% of trader set up orders were set to sell gold.
It indicates that take profits and stop losses of the long positions are close by. If these orders get executed, the retail sector might slow down the surge of gold prices.