- Market sentiment is 52% bullish
- 55% of pending orders in 1000-pip range are set to SELL Gold
- US Fed Chair Powell Speaks
Gold's three-day surge against the Greenback was stopped by the 200- hour simple moving average on Monday.
The Bureau of Labor Statistics released three data simultaneously from which two of them: Non-Farm Employment Change data and Average Hourly Earnings data came out lower-than-expected of 164K and 0.1% respectively.
However, Unemployment Rate data came out better-than-expected of 3.9% instead of the 4.0% forecast; it was not enough to stop the currency to go upwards.
US President Donald Trump Speaks
US President Donald Trump is scheduled to speak today regarding the Iranian International nuclear deal.
This fundamental event could have a major effect on currencies and the stock market.
XAU/USD stranded between SMAs
Gold's three-day appreciation against the US Dollar was stopped by the 200-hour SMA and the 38.20% Fibonacci retracement on Monday. As a result, the pair failed to form a higher high and reach the upper boundary of a short-term channel near 1,322.00.
Its movement yesterday was stranded in between two moving averages. The narrowing of the trading range does suggest that a breakout should occur soon, and it is likely that the direction of this move dominates the yellow metal during the remaining session.
Technical indicators favour a bearish breakout that should send the rate towards the senior channel and the 50.0% Fibo at 1,300.00. In case a bullish scenario occurs, Gold is expected to test the weekly PP at 1,331.00 within the following two trading sessions.
Hourly Chart
As apparent on the daily chart, the XAU/USD pair reached the 38.20% Fibonacci retracement level at 1316.67 and started to depreciate.
Daily Chart
Swiss market sentiment stays bullish
SWFX market sentiment is bullish with 52% of traders holding long positions in this session. Meanwhile, pending commands are set to sell the metal in 55% of all cases.
OANDA traders remain bullish, as 72% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 70% long positions.