- SWFX traders are 58% bearish
- 70% of pending orders in 1000-pip range are set to BUY gold
- Commodity price remains near 1,350
- Minor US data on Monday
After the weekend the yellow metal's price remained near the 1,350 mark. However, the commodity had reached the lower trend line of a long term channel up pattern.
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.
Almost empty Monday
The week is set to start slowly for macroeconomic event swing traders. At 13:30 GMT the rather insignificant data sets of Core PCE Price Index and the US Personal Spending will be published. History has revealed that they do not cause notable fluctuations. However, they might trigger short term trader's stop losses.
Due to that reason this data release is not going to be covered by the Dukascopy Analytics team. However, the rest of the week has more important events scheduled. Due to that reason watch closely the economic calendar.
XAU/USD stranded in narrow range
Gold remained stable against the Greenback on Friday, as the notable resistance of the 55-hour moving average and the monthly R2 limited the pair's appreciation above the 1,355.00 mark.
Thus, its subsequent movement was guided towards the 100-hour SMA located near 1,355.00. The yellow metal tested this area, likewise reinforced by the weekly PP and the bottom boundary of a short-term channel, early in this session.
Considering the lack of noteworthy fundamentals today, the rate could remain stranded in the narrow 1,355.00/1,355.00 range for several hours until one of the aforementioned barriers is breached.
It is more likely that bears prevail, thus allowing Gold to form a slight correction southwards from its 2017 high of 1,365.00.
Hourly Chart
A review of the daily chart has been conducted. The situation is rather simple.
The currency exchange 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 58% 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 51% bearish.