- Market sentiment is 54% bearish
- 51% of pending orders in 1000-pip range are set to SELL gold
- Bullion's price can't find support
- The metal trades below 1,320 mark
The short term situation on the XAU/USD charts has become increasingly complicated. Namely, fundamental events in the US have changed the situation via an increase in uncertainty, which has simultaneously caused a run to safety and an appreciation of the US Dollar.
The US private sector created 235K jobs in the reported month, expanding at a slightly slower pace than in January. At the same time, US non-farm employment change number still surpassed the February's forecast.
Ahu Yildirmaz, the Vice President and Co-head of the ADP Research Institute, said that the US labor market is keeping its growth rate uninterrupted and that persistant gains have been seen in industries related to leisure, hospitality and retail.
Employment data coming in
Friday has come. The employment data that was expected for the whole week is set to be released. Remember to join Dukascopy webinar platform to see the live coverage of the release.
The official US employment data package is set to be published at 13:30 GMT. The data will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
XAU/USD declines to 1,320
Bears have been guiding XAU/USD for the second consecutive session. This sentiment was strong enough to allow for a breakout of the 100– and 200-hour SMAs and the bottom boundary of a short-term channel up circa 1,325.00.
By Friday morning, the pair had returned at a previously-breached channel and the 38.20% Fibo retracement.
According to technical indicators, some downside potential could still be realised in this session.
The ultimate daily low should be the 1,305.00 area where the lower line of the senior channel and the monthly S1 are located. Meanwhile, the pair has formed a minor falling wedge that could be soon breached to the upside, thus sending the yellow metal towards the aforementioned SMAs, with gains being capped near 1,330.00.
Hourly Chart
On the daily chart one can notice that the recent resistance encountered is not just represented by the upper trend line of the short term channel. Near that level the support line of the previously active dominant ascending channel pattern is acting as a resistance.
Daily Chart
Markets short the metal
SWFX market participants continue to short the metal, as traders are 54% bearish. Meanwhile, pending commands remain slightly bullish, as 51% of all set up orders were to buy.
OANDA traders remain slightly bullish, as 52% of open positions were long on Friday. In addition, Saxo bank traders are also going long in 54% of all cases.