- Swiss market sentiment is 55% long
- 63% of pending orders in 1000-pip range are set to SELL Gold
- Weekly calendar review at 12:00 GMT
As Fundamental events took place on Friday, the bullion plummeted below all technical support levels and reached below the 1,280.00 level. The event was mainly caused by the increase of the demand for the US Dollar in the financial markets.
The Bureau of Labor Statistics released Producer Price Index data that came out better-than-expected of 0.50%, compared to the forecast of 0.30% and 0.10% in the previous period.
On Wednesday, the Labor Department said that the increase in the Wholesale Prices was boosted by the surge in gasoline prices and continuous rise in the cost of services.
Join for the calendar review
It is a usual empty Monday for macroeconomic data releases. However, it also gives the chance to properly prepare for the rest of the week.
For example, one can join the Dukascopy Analytics weekly economic calendar webinar, which is set to take place at 12:00 GMT on the bank's webinar platform.
Gold plunges 1.81% on Friday
Gold lost value against the US Dollar significantly on Friday, thus closing the day with a 1.81% plunge. As a result, the commodity dashed through several important support levels, including the senior channel which was formed in November, 2016. This strong fall was stopped solely by the monthly S1 at 1,2878.50.
It is more likely that the bearish sentiment eases in this session, thus allowing bulls to gain some advantage in the market. The nearest significant resistance is the 55-, 100– and 200-hour SMAs near 1,300.00, while, in case of a weaker bullish momentum, Gold might likewise retrace from the breached channel line at 1,290.00 and subsequently move back lower.
Hourly Chart
One can clearly observe also on the daily chart that the future technical analysis should be done only after the commodity and currency markets fully take in the news that the US are changing their monetary policy while their counterparts are sitting mostly without any action.
However, if one still needs to set certain targets for a short of the bullion, look at previous low levels and the weekly and monthly pivot points that show wide ranges of 20 US Dollars.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were still bullish. For a whole week the sentiment was 55% long with minor moves up or down by one percent.
Meanwhile, trader set up orders are neutral.
Contrary to the expected, during the fall of the bullion, Swiss Foreign Exchange traders have not terminated their long positions. However, the expectations of a continuation of the surge have disappeared as buy orders no longer dominate.
OANDA traders remain largely bullish, as 77% of open positions are long in this session. Moreover, it is an increase compared to the previous 69%. In addition, Saxo bank clients share the same views with 75% of total positions being long. Previously, 67% were long.