- Market sentiment remains 53% bullish
- 56% of pending orders in 1000-pip range are set to BUY Gold
- CB Consumer Confidence will influence the USD at 14:00 GMT
Due to the decline of the US Dollar across all charts, the commodity price of the yellow metal has surged on Tuesday. However, the move from a technical perspective encountered the most dominant resistance, which was expected. Due to that reason no additional gains were expected.
The Census Bureau simultaneously released two data sets, where Durable Goods Orders data came out lower-than-expected of negative 1.7%, which was one of the main reason for currency price to weaken.
In the contrary, Core Durable Goods Orders came out better-than-expected of 0.9%, which didn't let the EUR/USD currency pair to weaken too much, leaving the overall price fluctuations flat.
CB Consumer Confidence at 14:00 GMT in focus
Tuesday will start the week for the macroeconomic data release traders. However, the day will be very light, compared to the rest of the week.
Namely, the US CB Consumer Confidence survey results will be published at 14:00 GMT. Historically this release has caused near ten base point fluctuations.
The data release will be covered by Dukascopy Analytics. The start of the coverage on the bank's webinar platform is set to begin at 13:50 GMT. One can join by googling the webinars or finding them in the TV section.
Gold moves sideways
The yellow metal was trading sideways against the US Dollar on Monday stranded between the 55– and 100-hour SMAs. In addition, the pair was likewise moving along the bottom boundary of a junior two-week channel up.
The rate lingering near this line suggests that a downside breakout is likely to occur today. This would send the pair lower down to the 200-hour SMA at 1.294.00. This level might likewise be surpassed in case of sluggish US CB Consumer Confidence data at 1400GMT. The ultimate daily low should be 1,290.00.
Meanwhile, Gold moving above the 55-hour SMA should also result in a bullish breakout of the seven-week channel at 1,305.00. A subsequent surge is likely to follow, thus setting the 1.317.00 level as the next possible target.
Hourly Chart
As it was expected by watching the daily chart, the 1,300 mark did provide resistance. However, there is a more notable important fact on the daily chart.
Namely, the 200-day SMA stopped the surge, which followed the breaking of the 1,300 cluster. Moreover, the 1,300 cluster began to provide support on Friday. If the 200-day SMA at 1,307.50 would get passed, the 1,315 level would be targeted next.
Daily Chart
Swiss traders remain bullish
SWFX market sentiment remains unchanged and bullish for the third consecutive session with 53% of traders holding long positions in this session.
Meanwhile, pending commands are set to buy the yellow metal in 56% of all cases. This indicates that traders are prepared in case the bullion passes the previously described dominant resistance. Namely, as it gets broken, they expect to get in and profit from the following surge.
OANDA traders remain largely bullish, as 66% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 68% long positions.