- SWFX market sentiment is 70% bullish (+2%)
- 53% of pending orders in 1000-pip range are set to SELL Gold
- Empty economic calendar
Gold halts near a one-year low of 1,208.00 for the second time.
The US Federal Reserve announcement Interest Rates that came in line with expectation of <2.00% and the actual rate of <2.00% .
James McCann, senior global economist at Aberdeen Standard Investments says: The Fed "has already attracted the ire of the president for raising rates. This political interference is clearly unhelpful but may return as September approaches. I can't see Trump's tweets making [Fed Chairman Jerome] Powell change his course but it will be a test of his mettle to navigate the minefield of questions he'll inevitably get."
Quiet session today
Tuesday's trading session includes no significant data releases that could affect the pair; thus, it could remain trading with low volatility.
XAU/USD halts at one-year low
Downside momentum dominated the yellow metal on Monday, as it fell 0.80% mid-session. This fall was stopped by the 100.00% Fibonacci retracement which represents the pair's lowest position since July 2017.
Gold has since recovered, surpassed the 55-hour SMA and was testing the 100-hour moving average early on Tuesday.
The pair has already halted two times near this yearly low, so it is likely that a decline below this level does not occur. Thus, traders could look towards the bullish scenario. The nearest resistance is the aforementioned 100-hour SMA, with the 200-hour and 200-period (4H) ones being located nearby.
Hourly Chart
Strong bearish momentum has guided XAU/USD during the last three months. This has resulted in Gold losing 10.80% against the US Dollar.
The given move has sent technical indicators in the strongly oversold territory. Despite being there for a couple of sessions, the rate has yet failed to accelerate.
Appreciation should nevertheless follow, as bears may soon lack the necessary momentum to push Gold lower. The nearest resistance is a two-week trend-line and the monthly PP at 1,235.00. A breakout from this cluster would pave the way for a test of the 55-day SMA located near 1,260.50 on Tuesday morning.
Daily Chart
Swiss traders remain bullish
70% of SWFX market traders are going long on the pair, compared to 68% on the previous day. The number of pending orders shows the same bullish tendency, but far less stronger – 54%.
OANDA traders are bullish on the commodity with 84% of open positions being long today (+2%). Saxo Bank shares the same sentiment with 74% long positions.
The data still shows that larger brokerage clients are more bullish on the metal. Although, the most notable new information is that retail traders who dominate the Swiss Foreign Exchange sentiment are no longer massively expecting a surge.