- SWFX traders are 56% bearish
- 54% of pending orders in 1000-pip range are set to BUY gold
- Commodity price has finally passed 1,350 mark
- US GDP coming up on Friday
The long awaited passing of the 1,350.00 level has occurred. Moreover, the commodity price has jumped above the 1,360.00 level. Although, in regards to the future movement, more analysis needs to be done.
US homebuilding activity decreased more than anticipated by the end of 2017 to mark its largest drop in just a year, due to a steep fall in the single-family housing units construction.
US GDP on Friday
The yellow metal's fundamental traders are mostly concerned with the events occurring in the US government. The recent events surrounding the US government shutdown have pushed the US Dollar to a three year low level, forcing the commodity price to the recent high levels.
Although, macroeconomic release swing traders should look forward to this week. The US Advance GDP is set to be released at 13:30 GMT on Friday. This data release is most likely going to cause an increase of volatility.
XAU/USD highest level since mid-2016
Gold continues to appreciate against the US Dollar for the second consecutive session. The pair's surge late on Wednesday was attributed primarily to fundamental events as a result of which the yellow metal had already reached its highest mark since mid-2016 circa 1,365.00 by Thursday morning.
Technical indicators are located near their historic highs and are starting to converge. These factors suggest that downside risks are likely to prevail in the market today.
The expected fall is likely to be hindered near the 1,355.00 mark which is reinforced by the weekly and monthly R2s. The pair, however, should gather strength and push even lower.
The ultimate low for today should be the 55-hour SMA and the weekly R1 near 1,345.00.
Hourly Chart
On the daily chart one can observe that the fundamental events of the US are ignoring all of the technical patterns.
Namely, the upper trend line of a speculated dominant channel up pattern was broken. Due to that reason, expect the reveal of a new patterns in the upcoming trading sessions.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 56% of open positions are short. However, 57% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 52% of open positions are short. In the meantime, SAXO bank traders are neutral.