- Market sentiment remains 56% bearish
- 59% of pending orders in 1000-pip range are set to SELL gold
- Empty Wednesday for US events
On Wednesday the yellow metal remained in the same range between 1,320 and 1,330 levels. A pause of the decline of the metal's price was considered normal due to the fact that in the past months the metal declining for more than three consecutive trading sessions was rare and highly unlikely.
On Wednesday the Conference Board Inc. released better-than-expected Consumer Confidence, surpassing the forecasts of 126.0 with the number of 128.7 in April.
One of the main reasons for Greenback to rally was the high yield of the 10-year United States treasury bills, which showed notable gains during the start of the week.
Most important releases later in the week
Wednesday is set to be an empty trading session for fundamental macroeconomic fundamental swing traders. The only worth mentioning event will be the Bank of Canada Governor's Poloz speech at 20:15. However it is only going to affect the USD/CAD pair.
Meanwhile, in regards to impact to the US Dollar and subsequently all other financial instruments that are pegged to it, the end of the week will be more important. On Thursday at 12:30 GMT the US Durable Goods data sets will be out.
However, the most important macroeconomic data set of the quarter will be released on Friday. Namely, the US Advance GDP will be published at 12:30 GMT.
Both the release of the Durable Goods Orders and Advance GDP will be covered by the Dukascopy analysts on the bank's live webinar platform ten minutes before the data is released.
XAU/USD angers near 1,330
The yellow metal has been strengthening steadily against the Greenback following a reversal from the 1,322.00 mark late on Monday.
The pair breached the combined resistance of the 55-hour SMA and the monthly PP near 1,330.00 on Tuesday evening but has since failed to accelerate. This might be explained by the fact that bulls have not still gathered enough momentum to dash through this mark which is additionally reinforced by the 55-day SMA and the 200-period SMA on the 4-hour time-frame.
If this area is breached, Gold should pick up speed and reach the 1,340.00 level by the end of this session. Meanwhile, a failure to do so, should send the rate back to its April support at 1,322.00.
Hourly Chart
The expected test of the support near the 1,335.00 occurred. The pair has passed it after it managed to slow down the decline. However, the passing was expected to occur sooner or later.
Regarding the medium term future, it is still being expected that a medium term pattern reveals itself.
Daily Chart
Shift to the bullish side
SWFX market sentiment remains bearish with 56% of traders holding short positions. Meanwhile, pending commands were set to sell the metal in 51% of all cases.
OANDA traders are bullish, as 57% of open positions are actually long In addition, Saxo bank traders are 58% long.