- SWFX traders are 59% bearish
- 74% of pending orders in 1000-pip range are set to BUY gold
- Commodity price touches 1,335.00 mark
- Consumer Confidence on Tuesday
On Tuesday morning the yellow metal's price extended its decline until it was finally stopped by a psychological level. Namely the commodity price found support in the 1,335.00 mark, which forced the rate higher.
The US economy revealed weaker-than-anticipated expansion pace in Q4, as solid consumer spending resulted in an increase in imports. The Commerce Department stated that the US gross domestic product rose at a 2.6% yearly rate in the December quarter, compared with 3.2% in the Q3, being restrained by an expanding trade deficit and moderate inventory accumulation.
Meanwhile, durable goods orders rose 2.8% in December, with the US manufacturers benefiting from a solid global growth and a weaker currency, supporting the country's exports.
The week starts on Tuesday
On Tuesday the first significant fundamental macroeconomic event is set to occur. Namely the CB Consumer Confidence is set to be released at 15:00 GMT.
The data release is scheduled to be covered by the Dukascopy Research team on the live webinar platform of the bank.
One can join the webinar by clicking on the notification on the trading platform, which should pop up ten minutes before the release. Or find the webinar platform on the bank's webpage in the TV section or just google it.
XAU/USD moving south
The yellow metal has maintained its gradual movement southwards as of mid-Friday. It fell 0.63% against the US Dollar yesterday and continued the same tendency early in this session.
Following a breakout of the 100-hour SMA and the weekly PP circa 1,348.00, Gold also breached the 200-hour moving average and the bottom boundaries of three ascending channels. This suggest that the pair is likely to continue depreciating later this week.
For now, however, a brief correction north should occur, as technical indicators have been located in the relatively bearish territory since late Friday.
The nearest resistance is the 200-hour SMA, while a more realistic upside target for today is the 1,350.00 where the 55– and 100-hour SMAs are located.
Hourly Chart
A review of the daily chart has been conducted. The situation is rather simple.
The commodity price rate is trading simultaneously in two ascending channel patterns. One of the patterns is a junior and the second one is a massive scale dominating one.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 59% of open positions are short. However, 65% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 58% of open positions are short. In the meantime, SAXO bank traders are 52% bearish.