Notable events for this week are over. The CPI has set the tone for a USD decline.
XAU/USD short-term forecast
During Wednesday's trading, the 2,380.00 was passed and the metal headed to the 2,400.00 mark. A move above 2,400.00 could be slowed down by the upper trend line of the channel up pattern that captures the metal's recent surge. Higher above, note the resistance ranges near 2,420.00 and 2,430.00.
In the case of a decline, the metal could look for support first in the 2,360.00 level, before it reaches the combination of the 50 and 100-hour simple moving averages and the lower trend line of the mentioned pattern.
XAU/USD daily charts review
The decline of the metal's price that was correctly forecast is over. The metal has revealed a support zone near the 2,300.00 and most recently broken the channel down pattern that captures the metal's correction. In general, the price had surged too high to fast. Selling had to occur, before more gains occur.In regards to the future, the 50-day simple moving average is expected to push the metal's price into testing the resistance of the 2,400.00 mark.
Daily Candle Chart
Traders remain short
At the start of the week, traders were still bearish, as 70% of open positions were short. Meanwhile, pending orders were 67% to buy.
Traders were less short at the start of the month, which signals that losses have been suffered during the ongoing resumption of the surge.
On Wednesday, traders were still expecting a decline, as open positions were 72% short. In the meantime, pending orders were balanced 50% to 50%.