- Market sentiment is 52% bullish
- 51% of pending orders in 1000-pip range are set to BUY gold
- The yellow metal's price continues its rebound
- Minor data on Monday
The rebound against the 1,320 mark has extended itself. The bullion's price has reached near the 1,340 level. However, the price is unlikely to surge further above, as it faces various resistance levels, which should first be passed.
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.
Minor events on Monday
The calendar for Monday has some minor events, which might cause a reaction in the financial markets by affecting the underlying strength of the US Dollar. First will be the release of the US New Home Sales data at 15:00 GMT. However, the release will not be covered by the Dukascopy research team.
A more important event will be the speech of FOMC Member Quarles at 20:15 GMT. That event might shed some more light on the future monetary policy of the US.
XAU/USD strengthens against US Dollar
The yellow metal was consolidating in a narrow range against the US Dollar on Friday, as neither bulls nor bears could overcome the 55– and 100-hour SMAs that bounded at the time.
A change in sentiment occurred early today when the US Dollar weakened against major currencies. Gold was not an exception, thus allowing the pair to surge 0.93% up to the 200-hour SMA circa 1,340.00.
It is likely that the pair tries to edge higher towards its upper boundary or the weekly R1 near 1,345.00. However, this scenario would occur solely if the rate breached the combined resistance of the 200-hour SMA and the monthly PP at 1,338.50 which was being tested at the time of this analysis.
In terms of support, Gold is should not fall below the 55– and 100-hour SMAs circa 1,330.00.
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 52% bullish. Meanwhile, pending commands are set to sell the bullion in 55% of all cases.
OANDA traders are bearish, as 52% of open positions are short (-1%). Meanwhile, SAXO bank traders are 51% bearish.