This week, the top fundamental event will take place. The United States Federal Reserve will announce its monetary policy on Wednesday at 18:00 GMT. In addition, the event will be followed by the press conference with the Chairman of the Fed Jerome Powell.
However, up to the event markets might be surprises by large deviations from forecasts in the US ADP Non-Farm Employment Change at 12:15 GMT and the combined release of JOLTS Job Openings and ISM Manufacturing PMI at 14:00 GMT.
After the central bank events, on Friday, note that the markets will move due to the publication of the US monthly Employment data at 12:30 GMT.
XAU/USD short-term forecast
A move below 2,300.00 could look for support in early April's support and resistance zones near 2,265.00 and 2,225.00.
On the other hand, a recovery of the metal would have to break above the 50, 100 and 200-hour simple moving averages. Meanwhile, note the resistance of the 2,320.00, 2,340.00 and 2,360.00 levels.
XAU/USD daily charts review
We previously wrote: "On the daily candle chart, the metal shows to be massively overbought, as it has left far below the current price the daily simple moving averages. It needs to consolidate by trading sideways or declining, before resuming the broader surge."The decline is occurring, as the metal has pierced the support line that connects the February and March low levels. The trend line was expected to keep the metal from declining. A potential target for the decline could be the 2,223.00 level and the ascending 50-day simple moving average.
Daily Candle Chart
Traders remain short
On Tuesday, 66% of Dukascopy traders were short, as that proportion of open position volume was in short positions.
In the meantime, pending orders in the 1000-pip range around the current price were 82% to buy the metal.