- SWFX market sentiment is 57% bullish
- 67% of pending orders in 1000-pip range are set to BUY Gold
- CB Consumer Confidence at 14:00 GMT
On Tuesday morning, the yellow metal's price had fallen down to trade close to the support line of a dominant pattern near the 1,255.00 mark. Moreover, during the move the support of the monthly S2 was passed.
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."
CB Consumer Confidence at 14:00 GMT in focus
The day's economic calendar has one minor notable data release scheduled. Namely, the CB Consumer Confidence survey's results will be published at 14:00 GMT.
The data release will be covered by the Dukascopy Analytics team. The live coverage will occur on the bank's live webinar platform. The event will begin at 13:50 GMT.
Gold still pressured by SMAs
The 55– and 100-hour SMAs have guided the yellow metal since the massive fall on June 15. The pair's movement has become more stable during the past few days which might point to a possible change in sentiment this week.
Technical indicators on the larger time-frames are starting to recover; however, the price has failed to follow. It seems that these two moving averages could continue guiding the pair in this session, as well, especially if some downward potential still exists in the market.
The nearest support level is the monthly S2 at 1.260.00, while the junior channel line is likewise located nearby. In case the above resistance is breached, a surge should follow up to the monthly S1 and the 200-hour SMA circa 1,280.00.
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.
As the monthly S2 was passed, the channel's lower trend line is set to support the commodity price down until it reaches the historical low level near the 1,235.00 mark. Moreover, at that level the third monthly pivot point support level is located at.
Daily Chart
Swiss traders are still bullish
57% open positions of SWFX market traders were long on Tuesday. The sentiment has not changed since Friday.
Meanwhile, trader set up orders remain mostly bullish with 74% 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 80% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 75% long positions.