- SWFX traders are 53% bearish
- 61% of pending orders in 1000-pip range are set to BUY gold
- Commodity price remains near 1,350 mark
- Empty first half of the week for fundamentals
Although the yellow metal managed to find support on Tuesday, after another attempt to pass the 1,345.00 level the price retreated back down to the 1,335 mark. However, the pair has been approached by the 100-hour SMA, which might provide the needed support for the price to resume the surge and pass the 1,345 level.
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum. The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously.
Empty start of the week
The economic calendar for the week in regards to the strength of the metal's price is empty until Thursday.
However, swing traders should tune in for various swing trades scheduled to be covered by the Dukascopy research team during the week.
XAU/USD fluctuates in wider range
Following a minor period of consolidation during the first half of Tuesday, the bearish sentiment prevailed in the market and thus sent Gold down to the 1,332.00 area. Subsequently, the rate returned for a re-test of its four-month high of 1.344.03, but fell lower once again.
These increasing fluctuations demonstrate that Dollar bulls might have finally increased in strength. However, no massive declines are expected today, as the pair should still be tended slightly upwards. At the time of the analysis, Gold was constrained by the 55– and 100-hour SMAs.
Technical indicators suggest that the southern barrier should hold strong.
Meanwhile, the nearest upside target is the aforementioned 1.344.03 mark, while the ultimate upside target for today should be the weekly R1 at 1,348.83.
Hourly Chart
In regards to the daily chart there is no additional information to be drawn from it. By looking at it, one still sees the surge continuing up to the 1,350.00 mark.
Daily Chart
Market sentiment moves to the bearish side
SWFX market sentiment is bullish on Gold, as 53% of open positions are short. However, 62% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 55% of open positions are short. In the meantime, SAXO bank traders are 53% bearish.