- Market sentiment is 54% bearish
- 61% of pending orders in 1000-pip range are set to BUY gold
- Quiet Monday
On Monday morning the yellow metal's price had clearly bounced off the resistance of the previously active pattern. Moreover, during the decline various minor support levels had been passed, which indicated at a continuation of the decline.
The Bureau of Labor Statistics revealed much lower-than-expected data in non-farm employment change in March. However, there was an employment growth of 103K, it decreased more than three times from 326K in the prior month.
Without non-farm employment change, there were two more data sets that came out simultaneously. Average hourly earnings stayed in line with the forecast, however, the unemployment rate came out to be 4.1%, which was 0.1% more than expected.
Picking out releases on Monday
On Monday there are no notable macroeconomic data releases scheduled to occur. However, the rest of the week is set to have notable events occurring.
These events will be reviewed and discussed on the Dukascopy Research webinar at 12:00 GMT on Monday. During the discussion of the events, the data releases to be covered are set to be chosen not only by Dukascopy analysts, but also by webinar participants.
XAU/USD bounces off strong resistance
Gold was trading along a breached trend-line against the US Dollar during Friday's session. Further advances were restricted by this line and the 100-hour SMA, while a fall below the 1,324.00 was stopped by the weekly PP.
On Monday, the northern barrier is likewise reinforced by the 200-hour SMA and the 23.60% Fibo. This factor is likely to either pressure the yellow metal lower or result in a minor period of consolidation today.
In case the 55-hour SMA and the monthly PP at 1,328.00 is breached, a possible fall is restricted solely by the 38.20% Fibo retracement line at 1,316.67.
The prevailing patterns suggest that the pair is likely to push lower in both short– and medium-term. The bottom boundary of a two-week channel is located at 1,310.00.
Hourly Chart
The daily chart shows that the metal is continuing to decline with a large volatility in a medium term descending channel pattern. Namely, the pattern looks like set to guide the metal's price once more to the levels near the 1,300.00 mark.
Daily Chart
Markets increase bearish sentiment
SWFX market sentiment has increased its bearishness, as on Monday 61% of traders were short. Meanwhile, pending commands were bullish, as 56% of all set up orders were to BUY.
OANDA traders have decreased their largely bullish opinions, as 53% of open positions were long. In addition, Saxo bank traders are going long in 51% of all cases.