- Swiss market sentiment is 56% long
- 75% of pending orders in 1000-pip range are set to BUY Gold
- Day off for macro release traders
After breaching the 1,300 mark, the yellow metal's price declined on Friday. However, market sentiment indicated that there will be another surge in the near future.
The Bureau of Labor Statistics released Producer Price Index data that came out better-than-expected of 0.50%, compared to the forecast of 0.30% and 0.10% in the previous period.
On Wednesday, the Labor Department said that the increase in the Wholesale Prices was boosted by the surge in gasoline prices and continuous rise in the cost of services.
Quiet day for macro traders
The week has ended for macroeconomic data release traders, as there are no notable events scheduled for the day that might cause fluctuations in financial instruments that involve the US Dollar.
However, if one can spare the time, Dukascopy Analytics are hosting a webinar, which will be dedicated to the recent fundamental fluctuations of the Japanese Yen. Namely, there will be a look at the technical and the fundamental side of the pair.
The webinar is set to start at 12:00 GMT on the bank's live webinar platform.
Gold returns below 1,300.00
Gold finally managed to overcome the strong one-week resistance of the 50.00% Fibonacci retracement and the monthly PP at 1,302.00 on Thursday. A further surge, however, did not follow, as the yellow metal was once again pushed below the psychological 1,300.00 level.
Downside pressure was provided by the 200-day SMA which is located at this reversal point. By Friday morning, the pair had breached several important support levels and was testing the 55– and 100-period (4H) and 200-hour SMAs at 1,297.00.
In case this barrier is breached, Gold should approach the senior channel and the 61.80% Fibo. Conversely, a failure to do so is most likely to cause ranging movement between the 200-day SMA and these smaller-scale lines.
Hourly Chart
A new development has occurred on the daily chart. Namely, as the 1,300 mark was broken, the rate was stopped by a resistance level, which cannot be spotted on the hourly chart.
Namely, the 200-day simple moving average was located at the 1,307.40 level. It was providing resistance to the commodity price. If that resistance gets passed, the 1,315.00 mark will be targeted next.
At the 1,315 mark on Thursday the 55-day simple moving average was located at together with a 38.20% Fibonacci retracement level.
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. For a whole week the sentiment was 55% long.
Meanwhile, trader set up orders are 62% bullish.
The long expected breaking of the resistance has occurred. It took almost a week, as the Dukascopy traders wavered in expectations. However, it was clear that even, as 55% of traders were taking advantage of this move, there were more waiting in line to get in on the action in the short and long term.
OANDA traders remain largely bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 67% of total positions being long.