- Market sentiment is 54% bearish
- 80% of pending orders in 1000-pip range are set to BUY gold
- The yellow mental made a sharp moves to the upside
Gold continued to strengthen against the US Dollar. The yellow mental made a sharp move to the upside during the European session on Wednesday.
he Institute for Supply Management revealed the decrease in purchasing managers index of 59.3 in March, compared to 60.8 in the previous period. However, there was a decrease, the data was still positive by being above 50 and caused US dollar to strengthen.
The pair stepped lower just a little bit, which can be explained by the fact that there is still a holiday today and the volume is not as usual, which most probably eliminated more significant fluctuations.
ADP Non-Farm Employment Change
Today is full of fundamental events. The ADP Non-Farm Employment Change release scheduled at 12:15 GMT which will be covered by the Dukascopy research team in bank live webinar.
Followed by the ISM Non-Manufacturing PMI and Crude Oil Inventories which is scheduled at 14:00 GMT.
XAU/USD made sharp movement north
Following a sharp up-move on Tuesday which was caused primarily by weaker US Dollar, the yellow metal surrendered some of its positions during the previous session.
As a result, the pair was pushed down to the monthly PP at 1,330.00. Its subsequent movement was guided entirely by the 55-hour SMA which had pushed the rate to the combined resistance of the 200-hour SMA and the 23.60% Fibo near 1,335.60 by Wednesday morning.
Technical indicators remain bullish for this session, thus suggesting a move towards the senior channel and the monthly R1 at 1,355.00—the pair's highest level in March. This scenario should still be confirmed by a breakout of the long-term moving average.
Meanwhile, Gold's direction during the following week is expected to be south in line with the senior channel.
Hourly Chart
The daily chart shows that the commodity price has breached the upper boundary of a junior down pattern
Daily Chart
SWFX traders remain bearish
SWFX market sentiment remains bearish, as on Monday 54% of traders were short. Meanwhile, pending commands have become clearly bearish, as 80% of all set up orders were to BUY.
OANDA traders are no longer short, as 55% of open positions were long. In addition, Saxo bank traders are going long in 51% of all cases.