- Market sentiment remain 56% bearish
- 65% of pending orders in 1000-pip range are set to BUY gold
- The Yellow mental continues to slide lower
After piercing the 23.60% Fibonacci retracement level, the XAU/USD pair began to gain strength. However, the pair is currently stranded between SMAs.
The Bureau of Labour Statistics revealed lower-than-expected data in Consumer Price Index in March. On month-to-month basis CPI showed its first decrease in 10 months by 0.1%, compared to a growth of 0.2% in the prior month.
However, economists had forecast it to stay unchanged; the drop was caused by the decline in gasoline costs. Moreover, rising prices for rental accommodation and healthcare continued to put pressure on underlying inflation.
Prelim UoM Consumer Sentiment
The main event for today is the Prelim UoM Consumer Sentiment, which is considered to be a minor US fundamental event.
However, Dukascopy research team are keeping close eyes of situation on Syria regarding US military action.
XAU/USD stranded between SMAs
Following a massive surge earlier this week, bears have maintained their dominance in the market since late Wednesday.
The yellow metal fell 1.41% against the Greenback during the previous session and breached the 55– and 100-hour SMAs. Its subsequent support level, set by the 23.60% Fibo retracement and the 200-hour SMA, was not surpassed, thus leaving the rate near the 1,340.00 mark this morning.
Technical indicators remain bullish, suggesting that this cluster could remain intact. In addition, the pair is likely to be hindered near the 55-hour SMA and, if surpassed, no additional resistance barriers until 1,360.00 are located in between.
By and large, this session might not introduce significant volatility in the market, as no fundamental data releases are scheduled.
Hourly Chart
The XAU/USD commodity price end's yesterday with a beautiful bearish engulfing Japanese candle.
Daily Chart
Markets remain bearish
SWFX market sentiment had a slightly decreased bearishness, as on Wednesday 56% of traders were short. Meanwhile, pending commands were no longer neutral, but were set to buy the metal in 65% of all cases.
OANDA traders remained bullish sentiment, as 53% of open positions were long. In addition, Saxo bank traders are 51% long