- Market sentiment is 54% bullish
- 55% of pending orders in 1000-pip range are set to SELL gold
- The yellow metal's price remains in junior ascending pattern
- Durable Goods and Consumer Sentiment
The yellow metal has found support and is moving higher on Tuesday. However, the price is set to meet with the resistance of the 200-hour SMA at the 1,340.00 mark.
The US National Association of Realtors reported that in January the existing home sales slumped for the second month in a row. Contrary to economists' expectations for the number to have surged 0.9%, existing home sales declined 3.2% in the reported month.
It was the largest drop on year-to-year basis over the three-year period. Yet, the demand for housing is increasing due to the boosting labor market, which results as a shortage of buying opportunities for some potential first-time buyers.
Notable US data incoming
Tuesday is a notable day for macroeconomic data release swing traders. The reason for that is the fact that two rather notable data sets are set to be published.
First will be the publication of the US Core Durable Goods Orders data at 13:30 GMT. However, at the time the testimony of the new head of the Federal Reserve will be released. As in, at that time the text is published before the testimony occurs at US Congress.
At 15:00 GMT the CB Consumer Confidence index will be published. This data set release is not as notable as the Durable Goods Orders, but it is still notable enough to cause fluctuations in the financial markets.
Both data releases will be covered by the Dukascopy research team on the bank's live webinar platform. Feel free to join by clicking on the popup window that will appear 10 minutes before the release on our trading platforms. Or it is possible to find the webinar platform by searching – Dukascopy Webinar – on Google.
XAU/USD supported by 55-hour SMA
Following a period of strong appreciation on Monday morning, Gold was halted by the combined resistance of the 200-hour SMA and the monthly PP near the 1,340.00 mark. Most gains were erased during the following hours, thus leaving the rate circa 1,332.00 by Tuesday morning.
The 55-hour moving average has guided the pair's movement since mid-yesterday. This situation might continue during the first part of the day, thus narrowing its trading range within the bounds of this line and the 200-hour SMA.
The current positioning of the short-term channel up demonstrates that the yellow metal might still reach the senior channel circa 1,340.00 in this session.
However, US fundamentals released later in the day could likewise introduce some bearish pressure towards the 1,320.00 mark.
Hourly Chart
The daily chart shows that the long term ascending pattern has had its lower trend line pierced. That indicates that the pattern might become obsolete in the near future.
However, the recent ascent of the bullion's price indicates that the full breaking of the channel up pattern might not come soon, but rather remains a possibility in the medium term future.
Daily Chart
Market sentiment becomes bullish
SWFX market sentiment remains 54% bullish. Meanwhile, pending commands are set to sell the bullion in 59% of all cases.
OANDA traders are bullish, as 53% of open positions are long. Meanwhile, SAXO bank traders are 51% bullish.