- SWFX market sentiment is 72% bullish (-3%)
- 54% of pending orders in 1000-pip range are set to BUY Gold
- Upcoming fundamental events: US (Core) Durable Goods Orders m/m, Fed Chair Powell to speak, Jackson Hole Symposium
The yellow metal is facing the combined resistance of the 55- and 100-hour SMAs at 1,192.00.
The Energy Information Administration released Crude Oil Inventories data that came lower-than-expected at -5.8 Million to forecast –1.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Powell speaks today
Friday's trading session will start with the US monthly Durable Goods Orders at 1230GMT. The market expectation about the core reading is a 0.5% advance during the month of July. The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover will start at 12:20 GMT.
Another important fundamental event that could shake the given currency pair is a speech by the Fed Chair Jerome Powell who is to address ‘Monetary Policy in a Changing Economy' at 1400GMT.
XAU/USD tests upper trend line
The yellow metal has appreciated 0.67% against the US Dollar since Friday morning. The pair tested the bottom boundary of the trend line early on Thursday and tried to reach the top early on Friday.
During Friday morning hours, Gold was at 1,191.10, testing the 55-hour SMA (4H) as additional support level to recover itself. It seems that the 55-hour and 100-hour SMAs should cross at today's trading session giving strong bullish signals for traders.
The nearest support level is monthly S2 at 1, 117.90, while the nearest resistance level is the monthly S1 at 1,202.25
Hourly Chart
The daily chart has been reviewed. Two descending patterns have been discovered. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
In general, the bullion is set to test the resistance levels just above the 1,200.00 mark, which can either hold its ground and force the rate back down or give up. If the resistance levels are passed, the 1,235.00 level will be targeted.
Daily Chart
Markets remain largely bullish
72% of SWFX market traders are going long on the pair (-3%).
Meanwhile, pending buy orders have increased in number, as 60% of all traders set up orders are set to buy. This indicates that the retail traders are preparing to buy even more gold, if resistance levels are passed.
OANDA traders have increased their bullish sentiment by one percentage point to 74%. Likewise, SAXO Bank traders were 72% long on the yellow metal's price.