- Market sentiment is 51% bearish
- 64% of pending orders in 1000-pip range are set to SELL gold
- Bullion failed to break above resistance levels on Monday
- The metal trades near the 1,320 mark
As it seemed that the bullion was set to break through the last notable resistance on the hourly chart, the resistance beat the bullions price back down below the 1,320 mark. Namely, it was the 100-hour SMA, which did the job. Due to that reason the metal'' price remains in previous range.
The Bureau of Labour Statistics simultaneously released 3 reports on Friday: average hourly earnings, non-farm employment change and unemployment rate, from which only the first 2 had a notable impact on the exchange rate.
The move up in the currency pair was caused by lower-than-expected average hourly earnings data, while the downtick was driven by better-than-expected non-farm employment change figures.
The week's fundamental releases start
The week of macroeconomic releases starts, as the first notable event of the week is set to occur during the day. Namely, the US CPI is set to be published at 12:30 GMT.
Join the Dukascopy's webinar platform ten minutes before the release to watch the live coverage of the event.
In addition, the rest of the week will also have notable data releases that the Dukascopy research team will cover on the bank's live webinar platform. In general, each day at 12:30 GMT there will be a data release.
XAU/USD fails to break 1,325.00 mark
Following two sessions of decline, the yellow metal has allayed its bearish sentiment. The first part of Monday's session was very calm, as the bounds of the 55-, 100– and 200-our SMAs limited more extensive movements.
Additional volatility was introduced later in the day; however, the aforementioned SMAs still remained the main limiting factor for the pair.
Technical indicators are strongly bearish, thus pointing to a possible decline in this session. The nearest southern barrier is 1,305.00 where the senior channel and a breached trend-line are located. In terms of resistance, Gold is restricted by the monthly PP and the 23.60% Fibo at 1,330.00 and 1,335.60, respectively.
Traders should be attentive when the US inflation data come out at 1230GMT.
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 51% bearish. Meanwhile, pending commands have become bearish, as 55% of all set up orders were to sell.
OANDA traders remain slightly bullish, as 53% of open positions were long on Tuesday. In addition, Saxo bank traders are also going long in 53% of all cases.