- SWFX market sentiment is 57% bullish
- 64% of pending orders in 1000-pip range are set to BUY Gold
- Weekly calendar review at 12:00 GMT
On Monday morning the metal continued to trade in the previous range. However, note the hourly chart to see the short term and long term patterns.
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."
Start of the week webinar
The day's economic calendar is empty for macroeconomic data release traders. However, there is another event, where to invest your time.
At 12:00 GMT Dukascopy Analytics will host this week's start of the week webinar. During the webinar analysts will explain this week's economic calendar events and take requests for data release covers.
Gold faces resistance of SMAs
On Monday morning the bullion found support in the lone trend line of a short term ascending channel pattern. However, the surge was unlikely set to continue.
The reason for the hypothesis is the fact that the commodity price faced the resistance of the 55-hour simple moving average, which was located at the 1,268.00 mark.
Moreover, the 100-hour SMA was approaching the metal's price from the north near the 1,271.50 level. As this simple moving average approaches, additional resistance will be met by the bullion.
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, since Thursday the monthly S2 at the 1,258.47 level was set to provide support.
Daily Chart
Swiss traders are still bullish
57% open positions of SWFX market traders were long on Monday morning. The sentiment has not changed since Friday.
Meanwhile, trader set up orders remain 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 80% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 76% long positions.