- Market sentiment is 53% bearish
- 71% of pending orders in 1000-pip range are set to SELL gold
- The yellow mental continues to slide lower
The yellow mental continues to fall lower against the US Dollar. However, a brief retracement north occurred during the Asian session today.
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.
US ISM Manufacturing PMI release
There are several major fundamental events during this week. The first of which is the US ISM Manufacturing PMI release scheduled at 14:00 GMT. The data release will be covered by Dukascopy Research term during Monday's research webinar which start at 12:00 GMT.
XAU/USD made brief retracement north
No trading of XAU/USD occurred on Friday, so the pair started the day from its Thursday's closing position.
The yellow metal managed to gain some strength against the US Dollar during the Asian session today and thus breached the prevailing short-term channel. Its further advance above the 1,330.00 was restricted by the 55– and 200-hour SMAs.
Technical indicators flash bullish signals, suggesting that the aforementioned resistance, likewise reinforced by the 23.60% Fibo, should surrender. In case this scenario occurs, the pair will target the 100-hour SMA at 1,340.00—a level which should mark today's high.
On the other hand, the pair has more potential to move lower in this session, as the nearest support, apart from the monthly PP at 1,330.00, is set only by the weekly PP at 1.3200.00.
Hourly Chart
The daily chart shows that the commodity price open with a beautiful bullish candle and has already breached both the weekly pivot point and the 55-hour SMA.
Daily Chart
SWFX traders remain bearish
SWFX market sentiment remains bearish, as on Monday 53% of traders were short. Meanwhile, pending commands have become clearly bearish, as 71% of all set up orders were to SELL.
OANDA traders are no longer bearish, as 60% of open positions were long. In addition, Saxo bank traders are going short in 50% of all cases.