- Market sentiment is 52% bullish
- 52% of pending orders in 1000-pip range are set to SELL Gold
- Calendar overview webinar at 12:00 GMT
An unexpected event occurred on Monday, as the yellow metal's price has declined even further and slightly pierced the lower trend line of the most dominant pattern.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Calendar overview at 12:00 GMT
As it is quite often, the Monday's trading session is set to be empty for macroeconomic data release traders and econometric model builders.
However, Dukascopy Analysts are set to host a weekly review of the economic calendar at 12:00 GMT. The event will occur on the bank's webinar platform, which can be joined by clicking on the notification on JForex that will pop up just before the start of the event.
In addition, today there will be another event hosted by Dukascopy on the webinar platform. At 14:00 GMT our analysts will host an introduction to Technical Analysis webinar.
XAU/USD lingers near senior channel
Gold managed to break out from the short-term triangle and consequently move above the 55-hour SMA mid-Friday. However, this strong bullish sentiment did not last long, as the rate had returned at the senior channel line and the 61.80% Fibonacci retracement near 1,286.00 by Monday morning.
It is likely that the 55-hour moving average continues to pressure the rate lower and past the senior channel. Apart from this nearest southern barrier, there are no other support levels until the monthly S2 at 1,275.00. Technical indicators flash bearish signals for this session. Even if a fall occurs, it should not exceed the aforementioned monthly S2.
Meanwhile, the 1,300.00 mark should likewise remain intact, limited by the 50.0% Fibo and another channel line.
Hourly Chart
On the daily chart one can notice, that the decline of the bullion was stopped by the support of the most dominant drawn channel up pattern. Due to that reason the continuation of the decline was not expected. However, the support looks like failing on Monday morning.
Daily Chart
Swiss market sentiment is almost neutral
SWFX market sentiment is bullish with 52% of traders holding long positions in this session.
Meanwhile, pending commands are set to sell the yellow metal in 62% of all cases.
OANDA traders remain bullish, as 70% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 73% long positions.