- SWFX traders are 51% bearish
- 65% of pending orders in 1000-pip range are set to BUY the gold
- Gold price rebounds from 1,326.00
- Upcoming events: US Non-Farm Employment Change, Average Hourly Earnings, Unemployment Rate, ISM Non-Manufacturing PMI
The price of yellow metal continued to rise until the pair reached its daily maximum at 1,326.00. Today the surge is expected to continue due to support provided by the rising 55- and 100-hour SMAs.
The US private companies added 250K positions in December, the strongest monthly gain since March, the ADP Research Institute revealed on Thursday. The figures came in ahead of the official Labour Department's report, which includes both private and public-sector employment. The jobless rate is expected to remain at 4.1% in the same month. Separately, Markit said that the country's services sector activity softened at a weaker-than-anticipated pace, with PMI falling from 54.5 to 53.7 points in December, but still in the expansion range.
American labour market
At 13:30 GMT traders will have an opportunity to observe high volatility that will be caused by triple data release related to the American labour market. In addition to that, at 15:00 GMT the ISM will issue an update on the American Non-Manufacturing PMI, which also causes notable volatility in the markets.
XAU/USD surges to 1,326.00
Despite positive developments on the American labour market the bullion continued to advance against buck. The rate has successfully reached a tiny resistance zone located between the 1,321 and 1,322 marks. As further road to the north is obstructed by a combination of the weekly R2 and the monthly R1 near the 1,328.4 level the pair is expected to retreat back to the weekly R1 that became additionally secured by the 55-hour SMA. An existence of a minor ascending channel also point out on a plunge in the first half of this trading session. Since the area below the bottom trend-line of the above pattern contains the 100-hour SMA and the 61.8% Fibonacci retracement level, the drop below the 1,311.48 mark seems unlikely. However, it would greatly depend on today's release of the American macro data.
Hourly Chart
Daily chart suggests that over the last four months the exchange rate has been fluctuating in a descending channel that represents a part of a dominant channel up. If this assumption is true, then the yellow metal should resume the downfall at least until the pair hits one of the rising moving averages. However, if the back fails to gain a momentum, the gold traders might use the 61.8% Fibonacci retracement level at 1,311.48 as support to break to the top.
Daily Chart
Markets sentiment is neutral
SWFX market sentiment is neutral on Gold, as 51% of open positions are short. Accordingly, the same number of pending commands is set to buy the commodity.
OANDA traders are bearish, as 57% of open positions are short (+2%). In the meantime, SAXO bank traders are 51% bullish (-3%).