- SWFX market sentiment is 57% bullish
- 57% of pending orders in 1000-pip range are set to BUY Gold
- Durable Goods Orders and Weekly Webinar at 12:00 GMT
On Wednesday morning the yellow metal had steadily extended its decline by booking a new low level.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
US Durable Goods Orders at 12:30 GMT
A notable data release is set to occur in the United States. Namely, the US Durable Goods Orders and Core Durable Goods Orders will be published at 12:30 GMT.
Dukascopy Analytics will cover the data release on the bank's webinar platform. The data coverage will be a part of the weekly Fundamental Event analysis webinar, which will begin at 12:00 GMT.
Gold reaches three-month channel
The yellow metal has been depreciating against the US Dollar in a descending channel for the seventh consecutive trading session. The pair has already fallen 1.34% since the beginning of this week.
By Wednesday morning, Gold had reached the monthly S2 and the bottom boundary of a three-month channel down near 1,255.00. Shorter-term technical indicators are starting to recover, while those on the 4H time-frame are still lagging behind. However, it is still expected that this session brings some bullish momentum to the upside.
A strong resistance cluster is set by the 55– and 100-hour SMAs at 1,265.00. In case this level us surpassed, Gold is likely to target the 200-hour SMA at 1,275.00.
Hourly Chart
On the daily chart on Thursday Dukascopy Analysts spotted a new descending channel down pattern, which has guided the metal's decline since the middle of April.
As the monthly S2 was passed, the channel's lower trend line is set to support the commodity price down until it reaches the historical low level near the 1,235.00 mark. Moreover, at that level the third monthly pivot point support level is located at.
Daily Chart
Swiss traders are still bullish
57% open positions of SWFX market traders were long during the morning hours. The sentiment has not changed since Friday.
Meanwhile, trader set up orders remain mostly bullish with 72% of them being set to buy the yellow mental.
These factors combined indicate that the retail traders have already opened long positions after the long term decline. Moreover, there is a large domination of buy orders, which indicates that there will be more closing of short positions and opening of long set ups.
OANDA traders are bullish on the pair with 79% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 74% long positions.