- Market sentiment is 52% bearish
- 67% of pending orders in 1000-pip range are set to SELL gold
- Bullion passes most support levels
- The metal once more reaches two week low level
During the middle of Thursday's trading the yellow metal ignored the various support levels near the 1,325 mark and began a decline. By the middle of Friday's trading the pair met the 1,315 level and rebounded against it.
The Greenback fluctuated based on the releases of the controversial reports from the Federal Reserve Bank of New York and Philadelphia and the US Department of Labour on Thursday
The three simultaneously released reports created small increase in volatility in the financial currency market. The US unemployment claims data came out slightly better than expected, and with a help of the positive Empire State manufacturing index data
However, the Philly Fed manufacturing index data came out a bit short of expectations, as the divergence did not surprise the markets enough for a correction.
US Building Permits
The fully booked week has turned out into a disappointment. The reason for that is the fact that almost all released US data has hit the forecasts and caused only small fluctuations in the currency markets.
However, we still have one data release scheduled. Namely, the US Building Permits and Housing Starts data sets will be released at 12:30 GMT. This release will end the busy US data week.
To see the live coverage of the data release tune in to the Dukascopy webinar platform ten minutes before the data is released.
XAU/USD falls to two-week low
Gold was driven by bearish momentum during the previous trading session. This sentiment strengthened mid-session when the pair breached the combined support of the 55-, 100– and 200-hour SMAs. As a result, the yellow metal was located at 1,315.10—its lowest level in March—late on Thursday.
Given that this area has provided considerable support during the past three weeks, it is likely that the pair fails to edge lower in this session and therefore approaches the previously-breached moving averages.
The downward-sloping trend-line at 1,320.00 should be the highest mark for today.
Even though technical indicators flash bearish signals, some apparent signs of recovery add some ground to the aforementioned bullish scenario.
Hourly Chart
On the daily chart one can notice that the recent resistance encountered is not just represented by the upper trend line of the short term channel. Near that level the support line of the previously active dominant ascending channel pattern is acting as a resistance.
Daily Chart
Markets short the metal
SWFX market participants continue to short the metal, as traders are 52% bearish. Meanwhile, pending commands have become slightly bullish, as 52% of all set up orders were to buy.
OANDA traders remain slightly bullish, as 59% of open positions were long on Friday. In addition, Saxo bank traders are going long in 54% of all cases.