- Market sentiment has become 52% bearish
- 52% of pending orders in 1000-pip range are set to BUY gold
- Pivot Points play a large role in recent moves
- 1,350 mark was reached once more
As the metal's price passed the 1,350 mark, the surge of the bullion was stopped by the first monthly resistance at 1,351.22 level. However, that does not indicate that the surge has ended, as the metal's price has not clearly bounced off the resistance level.
The Greenback strengthened against its European counterpart, following the US core durable goods orders data released on Friday. The EUR/USD currency pair lost 17 pips, or 0.14%, to continue fluctuating in the 1.2336 area.
The Census Bureau reported that the country's core durable goods orders came in better than expected, posting 1.2% uptick in February and surpassing the forecast of a 0.5% surge.
One of the main reasons for this rebound was the increase in shipments of core capital goods. Moreover, non-defence capital goods orders recorded the biggest increase in five months. This surge indicates that business spending is set to continue.
First notable event will be on Tuesday
The US Dollar continues to lose due to fundamental events that aren't scheduled. Due to that reason newsfeeds and risk management have taken the attention.
However, there are some events scheduled for this week, which might cause medium fluctuations in the currency pairs and commodity prices that have the US Dollar as one of the financial instruments being exchanged.
The first notable event will be the release of the CB Consumer Confidence on Tuesday at 15:00 GMT. The data release will be covered by the Dukascopy research team on the bank's live webinar platform. Tune in ten minutes before the data is released to see the cover.
XAU/USD pushes towards 1,345.00
The yellow metal continues to trade in a five-day ascending channel against the US Dollar.
As apparent on the chart, the pair hindered near a medium-term channel at 1,345.00 during the first part of Friday. However, the prevalence of strong upside momentum mid-session allowed for a breakout of this pattern and further advance up to the 1,350.00 mark.
Gold has still fallen short from the senior channel located at 1,355.00. Thus, bulls might still manage to push towards this line.
Meanwhile, the rate has been trading sideways since mid-Friday. This shows that bulls could nevertheless be exhausted and therefore fail to reach the aforementioned area. A possible downside target for today is the 23.60% Fibonacci retracement and the 55-hour SMA near 1,335.00.
Hourly Chart
The 55-day SMA played a slight role as the supporter of the monthly PP and the weekly R1 in the range from the 1,325 to 1,330 mark, where the bullion found support to book another jump.
Meanwhile, the recently added medium term ascending pattern was immediately broken after being drawn. However, that did not occur in a negative light, as the surge was even overextended.
Daily Chart
SWFX traders have become bearish
SWFX market sentiment has become 52% bearish on Monday. Meanwhile, pending commands have become slightly bullish, as 53% of all set up orders were to buy.
OANDA traders have also become bearish, as 53% of open positions were short. In addition, Saxo bank traders are going short in 53% of all cases.