- SWFX market sentiment is 57% bullish
- 77% of pending orders in 1000-pip range are set to BUY Gold
- Combined webinar at 12:00 GMT
On Friday the yellow metal's price traded slightly higher. However it was still expected to decline in the longer term.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Use of Pivot Points and Canadian data at 12:00 GMT
The week will end quietly for macroeconomic data traders that focus on the US Dollar data releases. However, if one is interested in any action, at 12:30 GMT a Canadian data release is set to occur.
The data release will be covered by the Dukascopy Analytics team on the bank's live webinar platform at 12:20 GMT. Meanwhile, note that at 12:00 GMT the end of the week webinar will begin.
This week our analysts will host a short tutorial session that will introduce traders to the use of simple pivot points.
Gold reaches new low
The yellow metal continues to weaken against the US Dollar for the fifth consecutive session. This movement has been guided mainly by the 55– and 100-hour SMAs; thus, these moving averages might still lead the pair lower today until the bottom line of a three-month channel and the monthly S2 located near 1.255.00.
The 1,263.00 level which was reached mid-Friday is also the pair's lowest position since late December, 2017.
It seems that technical indicators are gradually starting to recover on the longer time-frames, as well. This could be an early indication of a possible change in sentiment. Even if bulls do not manage to push the yellow metal considerably higher today, they are expected to lead the pair next week.
Today's trading range is 1,255.00/1,285.00.
Hourly Chart
On the daily chart on Thursday Dukascopy Analysts spotted a new descending channel down pattern, which has guided the metal's decline since the middle of April.
Meanwhile, the decline of the metal is set to be paused by the various weekly support levels. For example, on Thursday, the weekly S2 at the 1,258.47 level was set to provide support.
Daily Chart
Swiss traders are still bullish
On Friday, 57% open positions of SWFX market traders were long. Previously 56% of traders were long.
Meanwhile, trader set up orders are mostly bullish with 72% of them being set to buy the yellow mental.
These factors combined indicate that the retail traders have already opened long positions after the long term decline. Moreover, there is a large domination of buy orders, which indicates that there will be more closing of short positions and opening of long set ups.
OANDA traders are bullish on the pair with 77% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 74% long positions.