- Market sentiment is 54% bullish
- 66% of pending orders in 1000-pip range are set to SELL Gold
- No notable data until Friday
On Thursday morning the yellow metal's price made another attempt to approach the 1,300 mark. It seemed that the bullion might actually succeed in the attempt, as the price managed to pass the last resistance before the 1,300 level.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Empty day for US releases
The whole week has been empty for US data releases, and it will be like that until Friday, when at 12:20 GMT the Dukascopy Analytics will begin the cover of the US Durable Goods release. The data is set to be released at 12:30 GMT. Moreover, the event will occur during the middle of Friday's Analytics webinar that will begin at 12:00 GMT.
Gold narrows trading range
Gold remained steady against the US Dollar for the second consecutive session on Wednesday. The pair failed to accelerate and surpass the 200-hour SMA, but it likewise lacked the necessary downside momentum to breach the nearby-located 55– and 100-hour SMAs.
This has left the pair in a narrow range between all three moving averages this morning. A breakout should determine the rate's subsequent movement during the day.
Given that the southern barrier has held strong for several sessions, a breakout of the 200-hour SMA is regarded as a more likely scenario. In this case, the upside target should be the seven-week descending channel at 1,303.00. Conversely, a fall below 1,290.00 should send the pair back to the senior channel or even lower at 1,280.00.
Hourly Chart
The daily timeframe chart shows that the most dominant support, which was pierced on Monday, was still holding ground. Namely, the commodity began to once more respect the support after it returned back above it.
However, while watching the daily chart, one can spot that the 1,300 mark is set to serve as a strong resistance level, as the weekly PP and the 50.00% Fibonacci retracement level are located just above the notable level.
Daily Chart
Swiss market sentiment is almost neutral
SWFX market sentiment remains unchanged and bullish with 54% of traders holding long positions in this session.
Meanwhile, pending commands are set to sell the yellow metal in 56% of all cases. These orders are set to go through in case the metal does not gain additional ground to the upside or if it pierces the support of the dominant pattern once more. In first case the longs would be closed. In the second case, shorts would get opened.
OANDA traders remain bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 65% long positions.