- SWFX traders are 56% bullish
- 84% of pending orders in 500-pip range are set to BUY the gold
- Price rebounds from 1,288.00
- Upcoming Events: US Unemployment Claims
The yellow metal is continuing to gain value against the buck in a large ascending channel. Due to support provided by three moving averages as well as the weekly R1 suggests that the exchange rate has a good chance to make a breakout from the pattern, instead of making a rebound.
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September. The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
US Unemployment Claims
The only American event that is worth following today will be weekly release of the Initial Jobless Claims at 13:30 GMT that is expected to increase from 229K to 232K applications.
XAU/USD heads to upper edge of ascending channel
Pressure of the 55-, 100- and 200-hour SMAs prevailed over the combined resistance formed by the 61.8% retracement level and the monthly PP. As a result, the exchange rate approached and tested the upper trend-line of a large ascending channel. Although the first attempt was not successful, the pair is expected to continue climbing to the top, using support provided by the above moving averages plus the weekly R1 located at the 1,281.00 level. There is a need to notice that on daily chart the pair faces no barriers on its way up until the weekly R2 at 1,291.92. This fact as well as the aggregate market sentiment, which is 63% bullish, suggests that the rate has a high probability to breakout from the channel up, instead of making a rebound near the 1,288.00 mark.
Hourly Chart
On daily chart the exchange rate continues to slowly climb upstairs in an unconfirmed rising wedge formation. Deprecation of the Dollar against all major currencies suggests that the pair might make a breakout already by the end of this week. However, if this assumption is untrue, then the bullion will be free to advance up until the 55-day and the monthly R1.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 56% of open positions are long. Accordingly, 56% of pending commands are to buy the commodity.
OANDA traders are bullish, as 72% (+0%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 53% (-3%) of open positions are long.