- SWFX market sentiment is 71% bullish
- Pending orders in the 1000-pip range set to buy in 52% of all cases
- No more relevant data
During the last 24 hours the metal has traded sideways. Although, note that additional support in the form of the 55-hour simple moving average has approached the metal's price.
Oil price have decreased after the US Crude Oil Inventories data release on Thursday at 15:00 GMT. The one-minute candle lost 31 pips, or 0.44% right after the data release. In the next minutes the rate was trading at the 71.30 level.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6M, compare to forecasted 2.3M.
No more data for gold
Macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade sideways to stay at the 1,230.00 level due to the resistance of the monthly R2 at the 1,227.33 level. The 55-hour SMA will try to catch up the rate during the trading session.
Besides, none of the technical indicators may change the yellow metal's trading direction on Tuesday.
Hourly Chart
On the daily chart one needs to note that the 100-day simple moving average is located at the 1,227.30 mark.
Daily Chart
Sentiment remains long on gold
On Tuesday, 71% of traders were long. The sentiment has been near the 70% mark since Friday,
Trader set up pending orders are still mostly set up to buy more gold. 69% of all orders are set to buy.
From this information we can deduct that, if the metal continues to surge, a lot more buying will begin, as most pending orders are still set to buy.