- Market sentiment has become 52% bearish
- 54% of pending orders in 1000-pip range are set to BUY gold
- Metal's price fails to pass dominant resistance
- 1,350 mark was reached once more
The gains of the bullion have increased on Tuesday. However, by the middle of Tuesday's trading the metal had bounced off the resistance of the dominant pattern and broken the junior ascending channel pattern.
The Greenback strengthened against its European counterpart, following the US core durable goods orders data released on Friday. The EUR/USD currency pair lost 17 pips, or 0.14%, to continue fluctuating in the 1.2336 area.
The Census Bureau reported that the country's core durable goods orders came in better than expected, posting 1.2% uptick in February and surpassing the forecast of a 0.5% surge.
One of the main reasons for this rebound was the increase in shipments of core capital goods. Moreover, non-defence capital goods orders recorded the biggest increase in five months. This surge indicates that business spending is set to continue.
Politics still dictate the rules
The US Dollar continues to lose due to fundamental events that aren't scheduled. Due to that reason newsfeeds and risk management have taken the attention.
However, there are some events scheduled for this week, which might cause medium fluctuations in the currency pairs and commodity prices that have the US Dollar as one of the financial instruments being exchanged.
The first notable event will be the release of the CB Consumer Confidence on Tuesday at 15:00 GMT. The data release will be covered by the Dukascopy research team on the bank's live webinar platform. Tune in ten minutes before the data is released to see the cover.
XAU/USD tests senior channel
Gold continues to appreciate against the US Dollar for the sixth consecutive session. Despite a few hours of consolidation on Monday morning, the yellow metal managed to gather momentum and push towards the 1,355.00 mark mid-session.
Further climb did not follow, as it was restricted by the monthly R1 and the senior channel. As a result, the pair failed to reach the upper boundary of the junior formation near 1,360.00.
Even though technical indicators are still flashing bullish signals, they are gradually moving away from the overbought territory. Thus, some bearish pressure could prevail in the market today.
This scenario would be confirmed by a breakout of the 55-hour SMA and the junior channel. A possible trading range for today is the 1,345.00/1.360.00 area.
Hourly Chart
More developments to be noted have taken place on the daily chart. Namely, the upper trend line of the dominant almost horizontal channel down pattern has been touched.
However, as it could have been expected, the channel's resistance has held its ground and forced the metal's price into a retreat, which has resulted in the passing of various support levels.
Daily Chart
SWFX traders remain bearish
SWFX market sentiment remains bearish, as on Tuesday 53% of traders were short. Meanwhile, pending commands have become slightly bullish, as 52% of all set up orders were to buy.
OANDA traders are also bearish, as 55% of open positions were short. In addition, Saxo bank traders are going short in 55% of all cases.