- Market sentiment is 56% bearish
- 66% of pending orders in 1000-pip range are set to BUY gold
- Last minor release of the week
The bullion's price has surged like a rocket. All patterns have been broken and a full review of the Technical Analysis aspect will be done. However, it seems that a medium term ascending pattern has not stopped influencing the commodity price.
The Bureau of Labor Statistics revealed lower-than-expected data in Consumer Price Index in March. On month-to-month basis CPI showed its first decrease in 10 months by 0.1%, compared to a growth of 0.2% in the prior month.
However, economists had forecast it to stay unchanged, the drop was caused by the decline in gasoline costs. Moreover, rising prices for rental accommodation and healthcare continued to put pressure on underlying inflation.
Last minor data set of the week
The main events of the week have passed. The US CPI disappointed swing traders by creating only a ten base point move.
In regards to the rest of the week, there is only one minor event to watch in regards to the USD. Namely, the US weekly Unemployment Claims are set to be released at 12:30 GMT.
Although, experience shows that it is unlikely to cause a notable fluctuation in the financial assets that are traded against the US Dollar.
Gold eases after surge
The yellow metal was guided by bulls on Wednesday who strengthened their positions during the second part of the session. As a result, the pair made a false breakout of the senior channel and surged up to the 2017/2018 high of 1,365.00.
This strong appreciation eased considerably during the Asian session, as Gold returned back in the senior pattern. This morning, it was set towards the 55-hour SMA and a short-term trend-line circa 1,345.00. The 100– and 200-hour SMAs and the 23.60% Fibo line are likewise located nearby.
In case this bearish sentiment continues to prevail, Gold should target 1,336.00 without surpassing it. In terms of upside potential, the pair is unlikely to move above the aforementioned high which coincides with the upper boundary of a six-week channel up.
Hourly Chart
The daily chart has a rather interesting development. Namely, the commodity price had pierced the upper trend line of the dominant channel. However, by the end of Wednesday's trading the metal had retreated below the dominant trend.
Moreover, the Wednesday's candle seems to properly fit in the pattern. This is one of the many signs that a decline of the metal is about to occur.
Daily Chart
Markets remain bearish
SWFX market sentiment had an increased bearish outlook, as on Thursday 57% of traders were short. Meanwhile, pending commands were almost neutral, as they were set to buy the metal in 51% of all cases.
OANDA traders remained with a slightly bullish sentiment, as 68% of open positions were long. In addition, Saxo bank traders have also abandoned the neutral sentiment, as 60% of open positions at the brokerage were reported to be short.