- Market sentiment is 50% bullish
- 54% of pending orders in 1000-pip range are set to BUY Gold
- US ISM Manufacturing PMI
On Monday the yellow mental move past the 38.20 % Fibonacci retracement level at 1316.6.
The Bureau of Economic Analysis released Advance Gross Domestic Product data for Q1 2018, but despite the fact that the data came out better-than-expected of 2.3%, compared to the 2.0% estimate, the EUR/USD currency pair moved upwards after bouncing a little bit lower at the moment of the report.
The move upwards may be caused by the fact that in the previous quarter Advance GDP data was 2.6%, which was about 0.3% higher than in the latest quarter.
US ISM Manufacturing PMI
The first notable fundamental event of the week is about to occur on Tuesday. Namely, the US ISM Manufacturing PMI.
The data release will be covered by the Dukascopy Research team ten minutes prior to the data released.
Gold move near the 2018 low
XAU/USD was pressured by the 55-hour SMA on Monday. The pair tried to surpass this moving average and the 38.20% Fibonacci retracement mid-day, but was stopped near the 1,320.00 mark.
It seems that the pair should maintain its bearish sentiment and edge lower in this session. This fall, however, is likely to be limited either by the 2018 low at 1,306.80 or by the senior channel and the 50.00% Fibo retracement at 1,300.00.
Even if the given commodity still manages to realise the aforementioned downside potential today, the following trading days should mark a bullish reversal, especially following an upside breakout of the 55– and 100-hour SMAs.
Hourly Chart
The XAU/USD pair has been trading in a junior descending channel since April 23. As a result, the pair has moved close to 2018 low level.
The pair's movement last week marked a strong decline down to the 100-day SMA and the lower range boundary. It is likely that this range gets abandoned soon just to allow for a further fall down to the 200-day SMA and the 23.60% Fibonacci retracement near 1,300.00 this week.
Daily Chart
Swiss market sentiment become bullish
SWFX market sentiment becomes bullish with 50% of traders holding long positions. Meanwhile, pending commands are set to buy the metal in 54% of all cases.
OANDA traders are strongly bullish, as 67% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 65% long positions.