- Market sentiment is 51% bullish
- 53% of pending orders in 1000-pip range are set to BUY Gold
- Empty Monday for macroeconomic releases
On Monday the yellow metal's price was being guided by the support of the 55-hour SMA. The SMA was clearly pushing the metal higher to reach a new high level.
The Bureau of Labor Statistics released two datasets simultaneously from which Consumer Price Index came out lower-than-expected of 0.2%, compared to negative 0.1% in the previous period. Similarly, Core Consumer Price Index too came out lower-than-expected of 0.1%, compared to 0.2% in the previous month.
The Department of Labor released Unemployment Claims data at the same time, which came out better-than-expected of 211K.
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There are no notable macroeconomic releases set to occur on Monday. It is no surprise, as most Mondays are empty sessions for macroeconomic swing traders.
However, tune in to the Dukascopy research webinar at 12:00 GMT. Our analysts will be looking at the economic calendar and pick out the data releases, which will be covered during this week. Main criteria will be the size of a sudden correction in currency exchange rates following a data release.
Moreover, participants will have available the live chat. By using that one can ask questions live to the presenters.
XAU/USD returns to channel
Similarly to other major pairs against the US Dollar, XAU/USD showed no massive changes to its position during the previous trading session. Slight upside momentum resulted in a false breakout from a two-week channel, but the pair did return back in this pattern later in the day.
It is likely that the yellow metal maintains its slight tendency south in this session. However, it does have to breach the 55-hour SMA near 1,320.00 beforehand to confirm this scenario. The ultimate low today should be the 200-hour SMA at 1,314.00.
In case the aforementioned moving average is not breached, the pair should remain trading along this line. No significant leaps northwards are likely.
Hourly Chart
On the daily time-frame, one can observe that the recent movements are representing the commodity price's bounce off from the resistance of an ascending channel pattern. However, the metal did manage to pierce the resistance of the described pattern.
Daily Chart
Swiss market sentiment is almost neutral
SWFX market sentiment is bullish with 51% of traders holding long positions in this session. Meanwhile, pending commands are set to sell the yellow metal in 53% of all cases.
OANDA traders remain bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 67% long positions.