- Market sentiment remains 52% bullish
- 64% of pending orders in 1000-pip range are set to BUY Gold
- Only Canadian data is notable on Thursday
The commodity price has breached the upper trend line of a large scale descending channel down pattern. It occurred as a break out from a triangle pattern that was formed from the trend lines of two channel patterns.
The Bureau of Economic Analysis released Preliminary Gross Domestic Product data that came out lower-than-expected of 2.2%, compared to the 2.5% in the previous period.
"The revision to headline GDP growth was small, as were most of the revisions to GDP components. The standouts were weaker inventory investment, weaker residential investment and stronger business investment," said Chris Low of FTN Financial Group.
No notable US data
After the busy Wednesday's trading session the macroeconomic calendars are almost empty. However, for any financial instrument, which involves the US Dollar, it is empty.
Meanwhile, macroeconomic data release traders are most likely going to be watching the release of the Canadian GDP at 12:30 GMT, which is surely set to increase volatility in the CAD pairs. The data release will be covered by the Dukascopy Analytics team beginning at 12:20 GMT.
Gold breaches channel
The yellow metal remained steady against the US Dollar during the previous session, as it was fluctuating around the 55– and 100-hour SMAs on the given day.
A significant fall was stopped by all three moving averages, while resistance was set by the upper boundary of a seven-week descending channel.
This medium-term pattern was breached early today, thus pointing to a possible surge within the remaining part of this week. There is enough upside potential until the 1,318.00 territory where the 38.20% Fibo and the 200-period (4H) SMA are located.
However, it should also be noted that the 200-day SMA is located at 1,310.00. Thus, this session could likewise mark either no changes to its price level or a slight decline down to 1,295.00.
Hourly Chart
As it was expected by watching the daily chart, the 1,300 mark did provide resistance. However, there is a more notable important fact on the daily chart.
Namely, the 200-day SMA stopped the surge, which followed the breaking of the 1,300 cluster. Moreover, the 1,300 cluster began to provide support on Friday. If the 200-day SMA at 1,307.50 would get passed, the 1,315 level would be targeted next.
Daily Chart
Swiss traders remain bullish
SWFX market sentiment remains unchanged and bullish for the fifth consecutive session with 52% of traders holding long positions in this session.
Meanwhile, pending commands have once more become largely bullish, as 57% of set up orders are to buy. Previously, traders had neutral set up orders on Wednesday morning.
OANDA traders remain largely bullish, as 67% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 69% long positions.