- SWFX traders are 55% bearish
- 77% of pending orders in 1000-pip range are set to BUY gold
- Metal back at 1,330.00
- Another ISM release
The short term forecast for the bullion has been wrong, as the tests of the 1,350 mark have ended with a failure. However, the metal has with that move confirmed the speculated trend line of the long term ascending pattern.
The job growth in the US increased in January, while wages surged further, recording the strongest annual growth in more than eight years, fuelling expectations that consumer inflation would push higher in 2018, as the job market reaches full employment.
The Labour Department stated that non-farm payrolls rose 200K positions last month. Meanwhile, the jobless rate remained at the lowest level in 17 years of 4.1%. Strong data underscored robust growth momentum, encouraging the Fed to be more aggressive in hiking interest rates in 2018.
Manufacturing ISM PMI
This Monday will be one of the rare Mondays when there is a notable data release set to occur from the US Dollar's side. Moreover, it actually might cause fluctuations. Namely, the ISM Non-Manufacturing PMI is set to be published at 15:00 GMT.
The release will be covered on the bank's webinar platform live. Join by clicking on the notification on the JForex platform or find the webinars in the TV section.
XAU/USD consolidates on Monday morning
Contrary to expectations, the yellow metal was driven by bearish momentum on Friday. Traders were still indecisive during the morning session; however, better-than-expected US employment data added some strength to the overall bearish sentiment thus pushing Gold down to the 1,330.00 mark where it had already found support by Monday morning.
This trading session marks a significant northern resistance which comes from the weekly and monthly PPs and the nearby-located 55-, 100– and 200-hour SMAs near 1,337.00 and 1,345.00, respectively.
Thus, the upside potential for this session could be 1,340.00, while the southern side is guarded by the weekly S1 at 1,323.60.
Technical indicators suggest that Gold could spend the day closer to its resistance area.
Hourly Chart
The previously not confirmed long term ascending channel pattern has been confirmed.
Namely, the commodity price bounced off its lower trend line exactly, where the speculated support was drawn.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 55% of open positions are short. However, 55% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 58% of open positions are short. In the meantime, SAXO bank traders are 52% bearish.