- Market sentiment is 52% bullish
- 60% of pending orders in 1000-pip range are set to BUY Gold
- US Retail Sales at 12:30 GMT start the week
On Tuesday the retreated of the yellow metal continued in the borders of the previously drawn medium term channel. It was expected that the rate would not decline below the 1,308.50 mark on Tuesday, as at that level the support of the mentioned pattern was located at.
The Bureau of Labor Statistics released two datasets simultaneously from which Consumer Price Index came out lower-than-expected of 0.2%, compared to negative 0.1% in the previous period. Similarly, Core Consumer Price Index too came out lower-than-expected of 0.1%, compared to 0.2% in the previous month.
The Department of Labor released Unemployment Claims data at the same time, which came out better-than-expected of 211K.
US Retail Sales at 12:30 GMT
Monday showed an empty trading session for macroeconomic data release caused swing traders. However, our regular readers joined the webinar, which looked at the rest of the week and analysed this week's events. The webinar can be accessed here.
Meanwhile, on Tuesday the first notable event of the week, which might impact the strength of the US Dollar, is set to occur. Namely, the US Retail Sales and US Core Retail Sales will be published at 12:30 GMT.
The data release will be covered by the Dukascopy research team's analysts at 12:20 GMT.
XAU/USD point to recovery
Gold remained stable against the Greenback during the most session on Monday, as it was restricted by the 55-hour SMA from below. This lack of movement changed when the pair fell 0.42% and consequently dashed through the 55-, 100– and 200-hour SMAs.
Technical indicators are located in the oversold territory; thus, a recovery is expected in this session. Upside potential, however, is likely to be limited due to the aforementioned SMAs being located in the 1,314.00/1,320.00 area. The 38.20% Fibo retracement and a five-week trend-line are also situated nearby.
If looking at downside potential, the yellow metal has no support until the senior channel and the 50.0% Fibo at 1,310.00. Thus, the pair might fall considerably if the junior channel at 1,310.00 is breached.
Hourly Chart
On the daily time-frame, one can observe that the recent movements are representing the commodity price's bounce off from the resistance of an ascending channel pattern. However, the metal did manage to pierce the resistance of the described pattern.
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 51% of all cases.
OANDA traders remain bullish, as 58% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 70% long positions.