- SWFX traders are 50% bullish
- 57% of pending commands are to buy the metal
- The bullion opened at 1,232.70
- Upcoming Events: US Unemployment Claims
The US trade deficit dropped more than expected in December after two straight months of increases amid higher exports. The Commerce Department reported the country's trade gap narrowed 3.2% to $44.3 billion in the reported month, following November's upwardly revised deficit of 45.7 billion, while market analysts held expectations for a decrease to $45.0 billion. The December improvement was driven by stronger exports that posted a 2.7% monthly increase to $190.7 billion, the highest level since April 2015. Advanced technology goods were the main contributor to export growth. However, US exports remained under pressure from the strong Dollar, which rose 4.4% against other major currencies in 2016. The data showed shipments to the EU climbed 10.1%, with exports to Germany advancing 12.4%.
The US President Donald Trump accused the EU's largest economy of using the weak Euro to exploit the US. Meanwhile, imports of goods and services jumped 1.5% to $235.0 billion in December, the highest since March 2015. The key drivers of import growth were attributable to higher oil prices and stronger domestic demand. Separately, the JOLTS monthly report released on Tuesday showed job opening in the US totaled 5.50 million in December, slightly down from November's revised 5.51 million and below a 5.56 million market forecast.
Upcoming events: US Unemployment Claims
The next 24 hours will be quiet for the financial markets with a few exceptions. The central banks of New Zealand and Australia are about to release information and give speeches. However, that information is not directly going to influence EUR/USD pair. The markets in general will be more moved by the US Unemployment Claims on Thursday at 13:30 GMT. That data release will be covered by the Dukascopy Research team live on the webinar, which will available for access by clicking on the notification on the trading platform.
Gold remains below resistance
Daily chart: On Wednesday morning the yellow metal fluctuated below the weekly R1, which is located at 1,233.81. The fluctuations are very similar to what occurred during Tuesday's trading session. However, there are differences, which give clues regarding the pair's future movements. First of all, the bullion's price was less volatile to the downside, which indicates that there is a minor support level prepping it up. Although, the resistance cluster above the commodity price is now being reinforced by the upper Bollinger band. These factors combined formulate a forecast of a flat session for the metal.Daily chart
Hourly chart: The hourly chart shows that it had a break higher during the morning hours, as the pair managed to touch the monthly R1. Due to this factor the hypothesis of a flat trading is adjusted with adding a factor of an upcoming surge in the aftermath of the consolidation of the positions. That is the forecast, which already revealed itself during Tuesday's trading session.
Hourly chart
SWFX traders neutral on the metal
OANDA Gold traders have a bullish outlook on the yellow metal, as open positions were 65% bullish on Wednesday. Meanwhile, traders of SAXO bank also remain long, regarding the yellow metal, as 58.71% of open positions are bullish.