- Market sentiment remains 54% bearish
- 81% of pending orders in 1000-pip range are set to BUY gold
- One minor release on Monday
As the US Dollar gains in the aftermath of political achievements in the Korean peninsula, the prices of commodities are falling. Meanwhile, analysts note that a decline, although smaller, was already expected.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
Trade technically
The weeks is set to start almost empty for fundamental macroeconomic data release traders. The reason is that on Monday the only worth mentioning release was the publication of the US Existing Home Sales data. The event was set to occur at 14:00 GMT. However, it will not be covered by the bank's analysts on the Dukascopy webinar platform.
XAU/USD more likely to guided by bulls
Bears were the main driving force of the XAU/USD exchange rate for the second consecutive session on Friday as a result of which the pair closed the day slightly above the bottom boundary of a medium-term and the 23.60% Fibonacci retracement.
This level was surpassed during the Asian session today, thus leaving the pair near the 1,334.00 level. It is likely that bulls try to recover some of the lost positions within this session.
The nearest considerable resistance is the 55-, 100– and 200-hour moving averages located near 1,344.00. A move above this level is unlikely today. This scenario is likewise supported by bullish technical indicators.
Meanwhile, downside potential could be realised until the 1,328.00 level.
Hourly Chart
The expected test of the support near the 1,335.00 occurred. The pair has passed it after it managed to slow down the decline. However, the passing was expected to occur sooner or later.
Daily Chart
Shift to the bullish side
SWFX market sentiment remains bearish with 54% of traders holding short positions. Meanwhile, pending commands were set to buy the metal in 56% of all cases.
OANDA traders are bullish, as 55% of open positions are actually long In addition, Saxo bank traders are 57% long.