- SWFX traders are 58% bullish
- 60% of pending orders in 500-pip range are set to SELL the gold
- Gold price aims to test 1,266.00
- Upcoming Events: US Building Permits, Current Account and Housing Starts
In result of previous trading session the exchange rate has broken the three-week long descending channel. Accordingly, today the pair is expected to test the weekly R1 at 1,266.05.
Industrial output in the US rose less than anticipated in November, as a decline in utilities production offset a post-hurricane jump in the gas and oil industries, the Federal Reserve stated on Friday. Overall industrial production rose 0.2%, following an upwardly-revised gain of 1.2% in the prior month and missing the expectations for a 0.3% surge. Meanwhile, the US manufacturing sector, which draws up nearly 12% of the country's economy, also grew 0.2% in the reported month.
American housing market
At 13:30 GMT the US Census Bureau will release the latest information on the state of American housing market. The data will include the number of issued building permits and housing starts.
XAU/USD ready to test weekly R1
In accordance with expectations, a support zone formed near the 1,254.00 mark did not allow the buck to gain value, while the rising 55-hour SMA pushed the yellow metal higher. In result of the soar, the pair has broken the three-week long ascending channel and started new trading day from the monthly S1 at 1,261.45. As the exchange rate is located in an ascending channel the surge is expected to continue. However, an alleged resistance located around the weekly R1 at 1,266.05 most probably will halt the upward movement, while adoption of tax bill by the Congress later this day might dissolute the above pattern and throw the rate back to the 100-hour SMA. In case of disappoint news the price of the bullion could spike right to the 1,270.00 mark.
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 58% of open positions are long. Accordingly, 58% of pending commands are to buy the commodity.
OANDA traders are bullish, as 71% (-2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 61% (-4%) of open positions are long.