- Market sentiment is 52% bullish
- 57% of pending orders in 1000-pip range are set to SELL Gold
- Upcoming fundamental events: ISM Non-Manufacturing PMI
The yellow metal faced the same resistance levels near the 1,315.00 mark. However, Dukascopy analysts could spot that an ascending channel pattern has formed on the smaller time frame charts.
The Automatic Data Processing Inc. released better-than-expected Non-Farm Employment Change data of 204K for the month of April. The data exceeded forecasts for the fifth consecutive month.
"The labor market continues to maintain a steady pace of strong job growth with little sign of a slowdown," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
Minor release on Thursday
There is one notable event set to occur from a macroeconomic fundamental release perspective. Namely, the ISM Non-Manufacturing PMI is set to be published.
The data was scheduled to be published at 14:00 GMT. That means that traders should tune in to Dukascopy's webinar platform ten minutes before the release. Namely, Dukascopy Analysts will start presenting data at 13:50 GMT.
Gold bullish Today
The bearish momentum which had guided the yellow metal during the past two days allayed on Wednesday, thus allowing XAU/USD to maintain a slight upward tendency. The pair nevertheless remained pressured by the 55-hour SMA which limited any gains above the 1,310.00 mark.
Technical indicators remain bearish for the following session, thus pointing to another decline. However, the senior channel and the 50.00% Fibonacci retracement near 1,300.00 are likely to provide strong support for the pair. In addition, bears might be reluctant to push Gold below this 2018 low.
In case the bullish sentiment prevails, there is enough upside potential until the 200-hour SMA at 1,320.00. But the two resistance levels located in between could bound the rate for a movement sideways circa 1,310.00.
Hourly Chart
As apparent on the daily chart, Gold has not surrendered its ranging motion. This medium-term pattern began late in December, 2017, and has since bounded the rate in the 1,360.00/1,312.00 territory.
The pair's movement last week marked a strong decline down to the 100-day SMA and the lower range boundary. It is likely that this range gets abandoned soon just to allow for a further fall down to the 200-day SMA and the 23.60% Fibonacci retracement near 1,300.00 this week.
Daily Chart
Swiss market sentiment becomes bullish
SWFX market sentiment is bullish with 52% of traders holding long positions in this session. The number of open positions on Tuesday was at equilibrium. Meanwhile, pending commands are set to sell the metal in 52% of all cases.
OANDA traders are strongly bullish, as 70% of open positions are long in this session (+1%). In addition, Saxo bank clients share the same sentiment with 67% long positions (+3%).