- Market sentiment is 55% bearish
- 58% of pending orders in 1000-pip range are set to BUY gold
- The bullion continued its decline on Thursday
- A decline is occurring following the encounter of a dominant resistance
The short of the Yellow metal continues to book more gains for traders, as on Thursday additional support levels were passed. However, the decline of the metal had been slowed down by the lower trend line of a descending channel pattern.
The Bureau of Economic Analysis revealed higher final GDP in the Q4 2017, however the market remained almost unchanged. The Bureau of Economic Analysis reported a growth of 2.9%, surpassing the expectations and following a 3.2% growth rate recorded in the previous period.
One of the main reasons for the US economy to expand more than forecast is the increase in consumer spending.
Minor data releases on Thursday
12:30 GMT is the time to do fundamental risk management. The reason is that at that time there will be various minor impact data releases published at 12:30 GMT. Namely, from the US Dollar's side the impact might be created by the Core PCE Price Index, US Personal Spending and Unemployment Claims. However, Dukascopy analytics team will cover another data release, which is set to occur at the same time.
The Canadian GDP monthly data will be released at the time, and our USD/CAD daily review analyst will be on the release and available for live questions on the bank's webinar platform ten minutes prior to the release. Tune in at 12:20 GMT to join the coverage.
XAU/USD moves below 200-hour SMA
The yellow metal continues to slide lower against the US Dollar for the third consecutive session.
The pair lost 1.58% on Wednesday, consequently breaching several important support clusters, including the 200-hour SMA and the monthly PP near 1,330.00. This strong downside momentum allayed later in the session when Gold tried unsuccessfully to regain its position above the long-term moving average.
Technical indicators flash bullish signals in this session, as they are located in the oversold territory. However, it is yet to be seen if the strong resistance at 1,330.00 is breached, because bulls might lack the necessary force to overcome this cluster.
In terms of downside potential, the rate is likely to target the 38.20% Fibonacci line at 1,317.00.
Hourly Chart
The daily chart shows that the commodity price has largely increased its volatility on Wednesday. In addition, during the decline the metal has passed the support of the 55-day simple moving average, which was located just above the 1,330 level.
It is likely that the decline needs a room for consolidation, as the Thursday's daily candle was rather flat.
Daily Chart
SWFX traders remain bearish
SWFX market sentiment remains bearish, as on Thursday 55% of traders were short. Meanwhile, pending commands have become clearly bullish, as 59% of all set up orders were to buy.
OANDA traders are no longer bearish, as 53% of open positions were long. In addition, Saxo bank traders are going long in 51% of all cases.