- Market sentiment is 53% bearish
- 56% of pending orders in 1000-pip range are set to BUY gold
- Main day of the week for fundamentals
The yellow metal's price has found support in a previously active channel's support, which was considered previously obsolete. As a result of the move upwards, the commodity price broke the resistance of the mapped medium term channel down pattern.
The Bureau of Labor Statistics revealed better-than-expected data in producer price index in March. It was mainly led by the increase in costs of an airline and healthcare services, pointing out to the wholesale inflation pressures.
Economists give their opinion about inflation being pushed towards the Fed's two percent target at the end of this year in a form of the weak dollar, tight labor market and fiscal stimulus.
The Fed and CPI
The main day of the week has arrived. There are two top priority events to watch during the day's trading session.
First watch the release of the US CPI and Core CPI data sets at 12:30 GMT. The data release will be covered by the Dukascopy Research Team on the bank's live webinar platform. Tune in at 12:20 GMT to watch the data release.
However, the main event of the day will be the release of the Federal Open Markets Committee's Meeting Minutes at 18:00 GMT. The text is set to give clues in regards to future US monetary policy.
Gold breaches trend line
XAU/USD continues to appreciate for the third consecutive session. The most recent surge occurred on Tuesday after the pair hit the strong support of the 55-, 100– and 200-hour SMAs circa 1,333.00. As a result, Gold breached a three-week channel early today and is currently targeting the medium-term channel near 1,355.00.
Technical indicators are located in the overbought territory; thus, it is more likely that bears strengthen their positions and push the pair back lower.
Meanwhile, this session includes several significant fundamentals from the US, so today's trading range is expected to be wide.
The upper boundary is the aforementioned medium-term channel, while the nearest support is set by the distant 55-hour SMA and the 23.60% Fibo circa 1,335.00.
Hourly Chart
The daily chart shows that the previously active medium term down pattern's resistance has been broken. Although, there are many reasons that might be quoted as the reason, our analysts consider that this might be a actually a chance to watch and see, where the exact resistance line of a medium term pattern is located at.
Daily Chart
Markets remain bearish
SWFX market sentiment had a slightly decreased bearishness, as on Wednesday 53% of traders were short. Meanwhile, pending commands were no longer neutral, but were set to buy the metal in 56% of all cases.
OANDA traders remained with a slightly bullish sentiment, as 51% of open positions were long. In addition, Saxo bank traders have also abandoned the neutral sentiment, as 56% of open positions at the brokerage were reported to be short.