- Market sentiment is 52% bullish
- 63% of pending orders in 1000-pip range are set to SELL Gold
- No notable data until Friday
Although on other pairs it could be noticed that the US Dollar is declining, the yellow metal's price did not plummet on Wednesday morning. In fact, hourly support levels had stopped it from falling.
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.
Empty Wednesday for US releases
The whole week has been empty for US data releases, and it will be like that until Friday, when at 12:20 GMT the Dukascopy Analytics will begin the cover of the US Durable Goods release. The data is set to be released at 12:30 GMT. Moreover, the event will occur during the middle of Friday's Analytics webinar that will begin at 12:00 GMT.
However, if you can't wait for Friday, on Thursday the UK Retail Sales will be published at 08:30 GMT. The data release will be covered by the Dukascopy Analytics team on the bank's webinar platform.
In addition, if a trader has the Wednesday's noon free from any other activities, there is something to fill the time with. Join the introduction to Trade Pattern Ideas webinar at 12:00 GMT.
XAU/USD remains in narrow range
Tuesday's trading session introduced no changes to Gold's movement against the US Dollar. The main reason was the strong support/resistance barriers formed by the monthly S1 from above and the 55– and 100-hour SMAs from below. This narrow trading range should soon surrender.
Given that the pair was starting to breach the moving averages at the time of this analysis, it seems that the overall direction should be south today. Technical indicators are likewise bearish. The nearest support level is the senior channel and the 61.80% Fibonacci retracement at 1,285.00, while this fall could still continue until 1,280.00.
Conversely, a strong resistance level is set by the 200-hour SMA at 1,300.00. Even if bulls prevail, this level should not be surpassed today.
Hourly Chart
The daily timeframe chart shows that the most dominant support, which was pierced on Monday, was still holding ground. Namely, the commodity began to once more respect the support after it returned back above it.
However, while watching the daily chart, one can spot that the 1,300 mark is set to serve as a strong resistance level, as the weekly PP and the 50.00% Fibonacci retracement level are located just above the notable level.
Daily Chart
Swiss market sentiment is almost neutral
SWFX market sentiment remains unchanged and bullish with 52% of traders holding long positions in this session.
Meanwhile, pending commands are set to sell the yellow metal in 58% of all cases. These orders are set to go through in case the metal does not gain additional ground to the upside or if it pierces the support of the dominant pattern once more. In first case the longs would be closed. In the second case, shorts would get opened.
OANDA traders remain bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 69% long positions.