- Market sentiment is 54% SHORT
- 68% of pending orders in 1000-pip range are set to BUY gold
- Strong bullish momentum dominated the yellow mental on Monday
A strong bullish sentiment pushes gold higher against the US Dollar on Monday. Due to that reason, XAU/USD breached the SMAs, the weekly PP and the 23.60% Fibo at 1,335.00.
The Institute for Supply Management revealed the decrease in purchasing managers index of 59.3 in March, compared to 60.8 in the previous period. However, there was a decrease, the data was still positive by being above 50 and caused US dollar to strengthen.
The pair stepped lower just a little bit, which can be explained by the fact that there is still a holiday today and the volume is not as usual, which most probably eliminated more significant fluctuations.
FOMC Member Brainard Speaks
In regards to the fundamental events this week, all attention will be focus on the US ADP non-farm employment change which is scheduled for tomorrow the 4th April. The data release will be covered by the Dukascopy research term on live webinar.
Meanwhile, the Federal Open Market Committee (FOMC) member Brainard will be speaking later today.
XAU/USD strong bullish momentum prevailed
Strong upside risks have dominated the given pair since late Thursday.
It reversed from the 1,322.15 area, thus providing another confirmation of the bottom boundary of a four-week channel, and began its movement towards the 1.345.00 mark. As apparent on the chart, Gold dashed through several significant resistance levels, including the 100– and 200-hour SMAs and the 23.60% Fibo at 1,335.00.
The base scenario favours the pair continuing to trade in line with the medium-term pattern and re-testing its March high of 1,355.00 where the senior channel and the monthly R1 are located.
Meanwhile, it is unlikely that the strong support at 1,335.00 is breached today, especially when the US Dollar is weakened by global trade tensions.
Hourly Chart
The XAU/USD pair open above a resistance cluster set by the weekly and the 23.60% Fibo at 1335.59.
Daily Chart
SWFX traders remain bearish
SWFX market sentiment remains bearish, as on Tuesday 54% of traders were short. Meanwhile, pending commands have become clearly bullish, as 68% of all set up orders were to BUY.
OANDA traders are no longer bearish, as 52% of open positions were short. In addition, Saxo bank traders are going long in 50% of all cases.