- Swiss market sentiment is 59% long
- 59% of pending orders in 1000-pip range are set to BUY Gold
- US PPI at 12:30 GMT
Wednesday morning gave some clarity to the traders of the yellow metal, as the commodity price declined and moved out of the previous horizontal range. Meanwhile, there was additional notable information on the daily chart.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
US Dollar will once more bounce around at 12:30 GMT
On Wednesday the financial markets are set to experience a data release, which might cause notable fluctuations in currency exchange rates.
Namely, at 12:30 GMT the US PPI will be published. The data release will be covered by the Dukascopy analysts, and the live coverage on the bank's webinar platform will begin at 12:20 GMT. Moreover, it will be a part of a longer webinar, as at 12:00 GMT the weekly fundamental event review will occur.
However, there is set to occur a US Dollar's surge, as at 18:00 GMT the FOCM is set to make a rate hike. Due to that reason the demand for the Buck will grow and another resistance will be broken.
Gold leaves range
On Tuesday, the yellow metal finally managed to break out from its diminishing trading range between the monthly PP and the 55– and 100-period (4H) SMAs at 1.301.00 and 1.297.00, respectively. The pair breached the latter mid-session, thus returning to the bottom boundary of a one-month channel at 1,295.00.
The pair breaching several important support levels suggests that bears could continue dominating the pair in this session, as well. This is likewise shown by the positioning of technical indicators.
Today's low is likely to be the senior channel at 1.290.00. The 61.80% Fibonacci line is likewise located nearby. Conversely, the 55– and 100-hour SMAs should restrict a move above 1,300.00.
Hourly Chart
The XAU/USD commodity price maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31 and on June 5. However, on Friday the resistance line of the pattern was broken.
It occurred not due to a move north, but actually due to the pair fluctuating horizontally just below the 1,300 mark. The mentioned symbolic level was guarded by the resistance of the weekly PP and the 50.00% Fibonacci retracement level and the mentioned pattern's resistance line.
Moreover, one could expect that next week the 50.00% retracement level will become the only one standing and the commodity price might surge above the 1,300 mark.
However, most recently the commodity price managed to find support in the previous resistance of the just described already broken pattern.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 56% of open Swiss Foreign Exchange XAU/USD positions were still bullish. Previously, for a whole week the sentiment was 55% long.
Meanwhile, trader set up orders are 60% bullish.
All in all, for the third day Dukascopy analysts noticed that retail traders were waiting for the break out to the upside to occur. First of all dominant positions were largely bullish. Secondly, open orders were showing that additional traders would open long positions, if the price breaks higher.
OANDA traders remain largely bullish, as 68% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 69% of total positions being long.