- Market sentiment remains 54% bearish
- 61% of pending orders in 1000-pip range are set to SELL gold
- A notable macroeconomic release
Just like any other asset that involves the US Dollar, the yellow metal's price has stopped large scale volatile movements. Meanwhile, from a technical perspective the metal's price has bounced off a long term support level.
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.
First release of the week
First notable data release of this rather quiet week is set to occur today. Namely, the CB Consumer Confidence is set to be released at 14:00 GMT. The data release coverage will begin at 13:50 GMT on the bank's live webinar platform.
All in all, the data release is expected to cause a rather medium reaction. However, due to the economic calendars being empty, it will be covered.
XAU/USD reverses from April support
The overall strength of the US Dollar put downward pressure on XAU/USD on Monday, thus allowing to extend the pair's losses for the third consecutive session. This fall halted at 1,322.40—a level which has provided an unbreakable support for the last five weeks.
It seems that the yellow metal might be reluctant to push significantly lower in this session, given that the 100-day SMA is strengthening the 1,320.00 area. Thus, it is more likely that bulls take the upper hand and push Gold closer to 1,350.00.
The nearest resistance that could hinder rapid appreciation is the 55-hour SMA and the 23.60% Fibonacci retracement at 1,335.00. Even if this level is surpassed, further gains should be limited due to the 100– and 200-hour moving averages being located slightly higher.
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.
Regarding the medium term future, it is still being expected that a medium term pattern reveals itself.
Daily Chart
Shift to the bullish side
SWFX market sentiment remains bearish with 55% of traders holding short positions. Meanwhile, pending commands were set to sell the metal in 51% of all cases.
OANDA traders are bullish, as 57% of open positions are actually long In addition, Saxo bank traders are 57% long.