- Market sentiment is 52% bearish
- 54% of pending orders in 1000-pip range are set to BUY gold
- Bullion passes most support levels
- The metal once more reaches two week low level
During the middle of Thursday's trading the yellow metal ignored the various support levels near the 1,325 mark and began a decline. By the middle of Friday's trading the pair met the 1,315 level and rebounded against it.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
G20 Meetings in focus
In regards to the macroeconomic events this week, all attention will be on the GBP. So for other pairs there are other fundamental events to focus on. Namely, the G20 Meetings will take place on Monday and Tuesday.
Meanwhile, the markets expect a US rate hike to occur on Tuesday. The Fed is expected to increase the base rate from 1.50% to 1.75%. That should cause a surge in the US Dollar.
XAU/USD approaches new 2018 low
Bears continue dominating the market for the third consecutive session. A period of recovery early was disrupted by the combined resistance of the 55– and 100-hour SMA on Friday.
The subsequent fall was caused by stronger US Dollar which pushed the rate down to the 1,310.00 mark.
Thus, the yellow metal is moving closer to the 2018 low of 1,305.00—a level which coincides with the bottom boundary of a medium-term channel. It is likely that this area is reached during this session; however, technical indicators being at generally low levels do suggest that a recovery should follow.
The northern barrier is guarded by the 55-, 100– and 200-hour SMAs. In case no fundamental event shake the market, this resistance might not be reached today.
Hourly Chart
On the daily chart one can notice that the recent resistance encountered is not just represented by the upper trend line of the short term channel. Near that level the support line of the previously active dominant ascending channel pattern is acting as a resistance.
Daily Chart
Markets short the metal
SWFX market participants continue to short the metal, as traders are 52% bearish.
Meanwhile, pending commands have become slightly bullish, as 58% of all set up orders were to buy.
OANDA traders remain slightly bullish, as 56% of open positions were long on Monday. In addition, Saxo bank traders are going long in 53% of all cases.