- Market sentiment is 55% bearish
- 67% of pending orders in 1000-pip range are set to SELL gold
- Bears dominated the XAU/USD exchange rate during the second part of yesterday's trading session
Gold surrendered it gains during the second part of Wednesday's trading session. The XAU/USD pair returned back to a dominant channel.
The Automatic Data Processing, Inc. revealed better-than-expected data in the US non-farm employment data in March.
Employment in private sector increased by 241,000, continuing the momentum in the Q1 2018, adding more jobs per month than on average in 2017, said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
He added that the manufacturing sector increased in its strongest pace during the last three years.
Minor US data release
Today might remain relatively calm as there no major US data releases. However, traders and investors await the US Non-Farm Employment change scheduled for tomorrow the April 6th.
Meanwhile, The Dukascopy research term will do the coverage of the UK service PMI scheduled at 8:30 GMT on bank live webinar.
XAU/USD made a reverse south
The first part of Wednesday's trading session was spent in a calm manner, as the yellow metal was moving along the 55-hour SMA.
A strong surge mid-session pushed the pair 0.94% higher towards its one-week high of 1,348.00. These gains, however, failed to remain for long, as the prevalence of strong downside risks resulted in a plunge back down to the monthly PP and the senior channel at 1,330.00.
Technical indicators demonstrate that this bearish sentiment could allay during the following hours, thus allowing for a slight recovery. Gains are likely to be limited due to the massive resistance cluster formed by the 55-, 100– and 200-hour SMAs and the 23.60% Fibo located near 1,337.00. This area might eventually be breached during the remaining part of this trading week.
Hourly Chart
The XAU/USD commodity price end yesterday with a strong decline
Daily Chart
SWFX traders still remain bearish
SWFX market sentiment remains bearish, as on Monday 55% of traders were short. Meanwhile, pending commands were also bearish, as 67% of all set up orders were to SELL.
OANDA traders are no longer short, as 52% of open positions were long. In addition, Saxo bank traders are going long in 51% of all cases.