- Swiss market sentiment is 55% long
- 55% of pending orders in 1000-pip range are set to BUY Gold
- US data at 12:30 GMT
On Thursday the yellow metal managed to pass the resistance of the 1,300 level. The move came after the commodity price retreated down to the 1,292.00 level, where it find support.
The Bureau of Labor Statistics released Consumer Price Index data that came out in line with a forecast of 0.2%, staying unchanged from the previous period.
"The slow but steady upward pressure on inflation could tilt a majority of policymakers to lift their suggested interest rate forecast," said Sal Guatieri, a senior economist at BMO Capital Markets.
US Dollar will again bounce around at 12:30 GMT
Thursday is set to be a busy day for macroeconomic data release traders. The main reason for that is the fact that a central bank rate announcement is set to occur during the day, and the following press conference will occur just as a US data release takes place.
Namely, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are scheduled to be published and covered by the Dukascopy Analytics team. However, at the same time the press conference, that follows the announcement of the European Central Bank's main refinancing rate, will start.
Meanwhile, note that the rate announcement will also be covered by the Analytics team. The coverage will begin at 11:35 GMT on the bank's live webinar platform.
Gold likely to trade in range again
XAU/USD has not left its narrow trading range for the sixth consecutive session. After reversing from the 1,295.00 mark yesterday, Gold gained momentum and dashed through the 55-, 100– and 200-hour SMAs. The pair tested the 50.00% Fibonacci retracement near 1,300.00 once again but failed to move above it.
In general, it is unlikely that the given commodity gains some additional bullish momentum in this session, as the 200-period (4H) and 200-day SMAs and the monthly PP are restricting a move above the 1,302.00/1,307.00 area.
Thus, the pair should either fluctuate in a narrow range between this resistance and the aforementioned hourly SMAs or approach the senior channel and the 61.80% Fibo near 1,290.00.
Hourly Chart
A new development has occurred on the daily chart. Namely, as the 1,300 mark was broken, the rate was stopped by a resistance level, which cannot be spotted on the hourly chart.
Namely, the 200-day simple moving average was located at the 1,307.40 level. It was providing resistance to the commodity price. If that resistance gets passed, the 1,315.00 mark will be targeted next.
At the 1,315 mark on Thursday the 55-day simple moving average was located at together with a 38.20% Fibonacci retracement level.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were still bullish. Previously, for a whole week the sentiment was 55% long with the exception of 56% on Wednesday.
Meanwhile, trader set up orders are 64% bullish.
The long expected breaking of the resistance has occurred. It took almost a week, as the Dukascopy traders wavered in expectations. However, it was clear that even, as 55% of traders were taking advantage of this move, there were more waiting in line to get in on the action in the short and long term.
OANDA traders remain largely bullish, as 66% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 66% of total positions being long.