- Market sentiment is 51% bullish
- 73% of pending orders in 1000-pip range are set to SELL Gold
- US Building Permits at 12:30 GMT
The yellow metal has plummeted down below the 1,300 mark. The fall should have positively surprised anyone, who was already shorting the short term decline of the bullion.
The Census Bureau released two datasets simultaneously, where Advance Retail Sales for the month of April came out lower-than-expected of 0.3%, compared to 0.6% in the previous period.
Moreover, Core Retail Sales too came out to be short of expectations of 0.3%, compared to 0.2% in the previous month.
"Looking ahead, the consumer faces the added burden of higher gasoline prices," said Michael Feroli, an economist at JPMorgan in New York.
Join at 12:00 GMT for the Swing webinar
Tuesday showed minor swings in regards to macroeconomic data releases. The releases were covered by our team and some managed to take advantage of the currency exchange rate swings.
Meanwhile, on Wednesday we have another event, which might cause a bounce in all of the US Dollar involved pairs. Namely, the US Building Permits will be published at 12:30 GMT. Tune in for the release at 12:20 GMT and at 12:00 GMT for the day's research webinar. During that webinar our analysts will look at the previous week's data releases.
However, if you have no idea what Forex Swing trading and an economic calendar is, remember that on Thursday at 12:00 GMT our analysts will host an introduction to Swing Trading webinar. Tune in to the bank's webinar platform at the mentioned times to benefit from the information.
XAU/USD should recover after plunge
The inability of the yellow metal to surpass the 200-hour SMA on Tuesday morning was followed by a significant 1.85% plunge down to the 1,290.00 level. Additional bearish pressure was provided by disappointing US Retail Sales released mid-yesterday.
During this time, Gold breached various support levels, including the five-month channel. The seniority of this pattern suggests that the pair should edge higher and test its bottom boundary and the 50.0% Fibonacci retracement at 1,300.00.
It is also likely that the pair's appreciation does not end there, as it should aim for the 55-, 100– and 200-hour SMAs near 1,310.00.
Hourly Chart
On the daily chart one can notice, that the decline of the bullion was stopped by the support of the most dominant drawn channel up pattern. Due to that reason the continuation of the decline is not expected.
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 63% of all cases.
OANDA traders remain bullish, as 74% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 72% long positions.