- Market sentiment is 54% bearish
- 53% of pending orders in 1000-pip range are set to SELL gold
- First notable release of the week
On Tuesday morning it could be observed that the commodity price had bounced off the support of the combination of all three SMAs that are used by Dukascopy analysts. However, the large scale situation remains largely unchanged, which means that the bullion might meet resistance near the 1,340.00 mark and continue the decline.
The Bureau of Labor Statistics revealed much lower-than-expected data in non-farm employment change in March. However, there was an employment growth of 103K, it decreased more than three times from 326K in the prior month.
Without non-farm employment change, there were two more data sets that came out simultaneously. Average hourly earnings stayed in line with the forecast, however, the unemployment rate came out to be 4.1%, which was 0.1% more than expected.
First release of the week
The first notable event of the week is about to occur on Tuesday. Namely, the US Producers Price Index is set to be published at 12:30 GMT.
The data release will be covered by the Dukascopy Research team ten minutes prior to the data being released. Join the bank's webinar platform at 12:20 GMT to enjoy the show.
XAU/USD trades in two patterns
Gold demonstrated high fluctuation against the Greenback on Monday. The pair was moving along the lines of the 55– and 200-hour SMAs prior to breaching the latter to the upside.
As apparent on the chart, the rate's movement has been bounded in two patterns, namely, a descending triangle and a short-term ascending wedge. The pair was testing the latter's bottom boundary near 1,330.00, which also coincides with the 55- , 100– and 200-hour SMAs, early today.
It is likely that this level holds strong and provides upward pressure for the pair. The nearest resistance is set by the upper triangle line at 1,340.00.
If taking into account the pair's movement since late February, Gold should reverse from this level and initiate a new wave south down to the 1,322.40 mark later this week.
Hourly Chart
The daily chart shows that the metal is continuing to decline with a large volatility in a medium term descending channel pattern. Namely, the pattern looks like set to guide the metal's price once more to the levels near the 1,300.00 mark.
Daily Chart
Markets remain bearish
SWFX market sentiment has slightly decreased bearishness, as on Tuesday 54% of traders were short. Meanwhile, pending commands were neutral.
OANDA traders have not changed their slightly bullish sentiment, as 54% of open positions were long. In addition, Saxo bank traders have become neutral.