- Market sentiment remains 56% bearish
- 60% of pending orders in 1000-pip range are set to BUY gold
- Only FOMC speeches today
Gold has formed a minor ascending triangle against the US Dollar. A breakout is likely to determine the pair's direction during the day.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
No important fundamentals today
The only fundamentals scheduled for today are speeches by two FOMC members. The President of the Federal Bank of New York William Dudley is due to speak about the economic outlook and monetary policy at 1915GMT, while the Federal Reserve Governor Randal Quarles is due to speak at the Bretton Woods Committee Annual Meeting at 2015GMT.
XAU/USD indecisive in morning
The yellow metal has been trading below the 1,350.00 mark for the third consecutive session. Together with an upward-sloping trend-line, the pair has formed a minor ascending triangle.
The diminishing trading range within this pattern suggests that a breakout should occur soon. Technical indicators flash bullish signals. In line with this scenario, Gold should breach its three-day resistance and approach either the monthly R1 or the senior channel at 1,355.00 and 1,360.00, respectively.
On the other hand, bears might take advantage of bulls' inability to push the pair above the 1,350.00 level. They could move the rate past the 200-hour SMA and towards the 1,335.00 area where the 23.60% Fibonacci retracement and a medium-term channel are located.
Hourly Chart
The daily chart shows that the commodity price has been declining gradually in a downward-sloping channel. The pair might push for its upper boundary circa 1,355.00 during the following days prior to reversing to the downside and moving towards the 55-day SMA.
Daily Chart
Markets remain bearish
SWFX market sentiment remains bearish with 56% of traders holding short positions. Meanwhile, pending commands were set to buy the metal in 56% of all cases.
OANDA traders remain bullish on the pair, as 52% of open positions are long. In addition, Saxo bank traders are 52% long.