- Market sentiment is 52% bearish
- 64% of pending orders in 1000-pip range are set to BUY gold
- A rebound is taking place
- Dominant resistance was passed
The reaching of the dominant support levels has resulted in a surge, which by the middle of Monday's trading had reached above the 1,325.00 mark. In addition, a previously active long term pattern's resistance has been passed.
The ISM stated that the US Manufacturing PMI increased from 59.1 in January to 60.8 in February, representing the highest mark since May 2004. The US manufacturing activity strengthened in the reported month mainly due to expending exports that are showing their highest growth rate since April 2011.
In fact, growing employment rate also was one of the factors driving the overall expansion in the domestic manufacturing sector.
US data at the end of the week
Regarding this week most action is set to occur at the end of it. However, be sure to watch the various central bank rate announcements at the middle of the week.
Meanwhile, US labour data will be released with the ADP payrolls on Wednesday and official employment data will follow on Friday. These data releases will be covered by the Dukascopy research team on the bank's live webinar platform.
XAU/USD moves as forecast
The yellow metal was stable against the US Dollar on Friday morning, as it was supported by the 55-hour SMA and the 38.20% Fibo retracement. It managed to pick up speed mid-session and even breach the 200-hour SMA early today.
This two-day period of appreciation has sent the pair close to the 1,330.00 mark where the upper boundary of a three-week channel and the monthly PP are located.
Technical indicators are in favour of strong bearish momentum, although some upside potential still could be possible within the following trading hours. A possible point of reversal could be the aforementioned 1,330.00 mark or the 23.60% Fibo at 1,335.60.
In terms of support, Gold should not move below the 55– and 100-hour SMAs near 1,318.00.
Hourly Chart
The recently speculated new long term channel has been confirmed. However, a slight adjustment to the trend lines might be done.
Daily Chart
Markets short the metal
SWFX market sentiment on Monday was 52% bearish. Meanwhile, pending commands are set to buy the bullion in 53% of all cases.
OANDA traders have not changed their collective opinion since Friday, as 59% of open positions remain long.