- SWFX traders are 59% bullish
- 61% of pending orders in 500-pip range are set to BUY the gold
- Gold price tries to break above 1,257.00
- Upcoming Events: Empty day
The yellow metal is trying to pave the path to the north through the upper boundary of a medium-term descending channel. An allocation of technical indicators suggests that this attempt will succeed. However, the fundamental background points out on further appreciation of the buck.
The US retail sales expended more than anticipated in November, amid the brisk start of holiday season, suggesting that sustained economic strength could set the stage for further Fed's rate hikes in 2018. The Commerce Department stated that the country's retail sales increased 0.8% in November, following an upwardly revised 0.5% gain in the prior month, as households bought range of goods, while cutting motor purchases.
Quiet Monday
An economic calendar does not contain any macroeconomic events that are worth following today.
XAU/USD tests upper boundary of senior channel
During the last trading session the exchange rate expectedly tried to break through the upper boundary of a senior descending channel. In the middle of the day it even managed to reach the alleged resistance zone near 1,259.00 but then was forced to retreat. Today these attempts are expected to resume due to continuous pressure exercised by the 55 SMA. However, the growing optimist related to adoption of tax bill by the Congress is likely to result in ultimate appreciation of the buck. On the other hand, an effect from this fundamental event might not be especially sharp due to existence of a strong support zone located around the 1,254.00 mark that is backed up by the 200-hour SMA.
Hourly Chart
On daily chart the exchange rate is trading in a three-month long descending channel that started to transform into the falling wedge formation in result of rebound from the 50% Fibonacci retracement level. Accordingly, in nearest future the rate is expected to keep moving upwards tending to reach combined resistance formed by the 200-day SMA and the 38.2% retracement level near 1,268.00.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 59% of open positions are long. Accordingly, 59% of pending commands are to buy the commodity.
OANDA traders are bullish, as 73% (-3%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 65% (+0%) of open positions are long.