- Market sentiment is 52% bullish
- 57% of pending orders in 1000-pip range are set to SELL Gold
- Upcoming fundamental events: US ADP Non-Farm Employment Change, FOMC Statement, Federal Funds Rate
Gold faces strong resistance near 1,315.00 today.
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.
FOMC dominates fundamentals
The main fundamental event in this session is the FOMC Monetary Policy Statement and the Federal Funds Rate at 1800GMT. A rate hike is not expected to occur today; so any deviation from this assumption is very likely to cause big fluctuations in the market.
Meanwhile, some other data releases are scheduled during the first part of the day, including the ADP Non-Farm Employment Change published 1215GMT.
Gold faces strong resistance
The yellow metal was not an exception, as it was likewise pressured lower by the stronger US Dollar during the previous session. This fall allowed bears to push the pair down to the senior channel and the 50.00% Fibonacci retracement near 1,302.00.
This sentiment changed during the Asian session when Gold recovered some loses and returned near the 55-hour SMA near 1,315.00. It is likely that the given area, reinforced by the 100-hour SMA and the 38.20% Fibo retracement, provides a strong resistance for the pair, thus limiting a surge during the first part of the day, at least.
This might result in another decline down to the 1,300.00 mark. The market could lack high volatility prior to the Fed Monetary Statement released at 1800GMT which is likely to guide the rate for the remaining part of the day.
Hourly Chart
As apparent on the daily chart, Gold has not surrendered its ranging motion. This medium-term pattern began late in December, 2017, and has since bounded the rate in the 1,360.00/1,312.00 territory.
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 is bullish with 52% of traders holding long positions in this session. The number of open positions on Tuesday was at equilibrium. Meanwhile, pending commands are set to buy the metal in 54% of all cases.
OANDA traders are strongly bullish, as 69% of open positions are long in this session (+2%). In addition, Saxo bank clients share the same sentiment with 64% long positions (-1%).