- SWFX traders are 51% bearish
- 55.95% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,270.38
- Upcoming Events: US Average Hourly Earnings; US Non-Farm Employment Change; US Unemployment Rate
The bullion found strength in hourly support levels and has returned to trade back near the 1,270 mark. Due to that reason it is expected that the short lived consolidation period might have ended, as the junior ascending channel has proven itself to be strong enough to push the commodity price higher earlier than expected.
The Institute of Supply Management reported that its Non- Manufacturing PMI dropped more than anticipated to 53.9 points in July after rising to 57.4 in the previous month. Weak recent reports are set to discourage the Federal Reserve to make one more rate hike this year and keep the Greenback biased downwards. In addition, the NFP report on Friday is more likely to disappoint forecasts, while wage component would determine whether higher interest rates are allowable.
US employment data
Market participants will watch the release of a US employment data package at 12:30 GMT. It will consist of US Average Hourly Earnings, US Non-Farm Employment Change and the US Unemployment Rate. The data release will be covered by the Dukascopy Research Team on the bank's live webinar platform.
XAU/USD grows on weak US data
Yesterday the pair, indeed, made an attempt to return into preceding ascending channel. The fact the bullion managed to bypass and stay above a combination of the 55- and 100-hour SMAs is, generally, attributed to the weak US figures that were released yesterday. However, the above impulse was not enough the force the pair to soar towards the 61.8% Fibonacci retracement level. As a result, this third unsuccessful attempt points out on formation of a short-term descending channel. If this assumption is true, the pair should make a rebound somewhere between the 1,269 and 1,271 levels and slip back to the 200-hour SMA and the weekly PP at 1,261.80. However, the ultimate outcome will also heavily depend on result of the released US macroeconomic data today at 12:30 GMT.
Hourly Chart
Due to the recent rebound against minor support levels. The additional levels of significance from the daily chart are no longer a top priority to watch, as the daily SMAs have been left behind just above the 1,250 mark.Daily Chart
SWFX traders bounce around neutral zone.
Traders of Dukascopy remain in the neutral zone, as 51% of open positions are short. Meanwhile, the bulls are back in regards to set up orders, as 56% of pending commands are to buy the metal.
OANDA Gold traders have not changed their bullish outlook, as open positions are still 56% long. In the meantime, SAXO bank sentiment is 54% bullish.