- SWFX market sentiment is 72% bullish
- Pending orders in the 1000-pip range are set to buy in 60% of all cases
- Minor US data at 14:00 GMT
The metal's price has fallen down tot eh 1,220.00 level. The decline has occurred mostly due to the strength of the US Dollar.
Latest Fundamental Event
Oil prices increased volatility during the release of the US Crude Oil Inventories at 14:30 GMT. Initially, the price dropped by nearly 20 base points. However, immediately buy orders of the retail sector went through and pushed the price higher by 44 base points.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6.7M, compare to forecasted 3.6M.
"The report is mixed due to the dueling large build in crude oil inventories and steep decline in gasoline and distillate fuels," said John Kilduff, a partner at Again Capital Management in New York.
US CB Consumer Confidence at 14:00 GMT
On Tuesday, the US CB Consumer Confidence data will be published at 14:00 GMT. It shown on many economic calendars as a high impact data release. However, historically the data release has caused no notable impact on the currency markets,
Although, due to due diligence the data release will be covered by Dukascopy Analytics. The cover webinar and YouTube stream will begin at 13:50 GMT.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will keep moving downside towards the monthly R1 at 1,209.98 due to the resistances of the most technical indicators.
However, the US Dollar could depreciate against the yellow metal during today's US CB Consumer Confidence data release at 14:00 GMT. The fundamental news could force the gold to break the resistance of the monthly R2 at 1,227.33.
Hourly Chart
On the daily chart note that the 1,220.00 levels have technical support. Namely, the 100-day simple moving average was holding its ground at that level. Only when it gets passed, the rate would be able to decline down to the support levels near the 1,210.00 mark.
Daily Chart
Traders dump long positions
On Tuesday, 72% of traders were long on the yellow metal. Previously, 75% of trader open positions were long.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 71% of all orders are set to buy. On Monday, 75% of orders were to buy.
It can be seen that, as the gold price was falling, short term traders dumped their long positions and cancelled their buy orders.