Since the middle of Tuesday's trading session, the yellow metal's price has been finding support in the 1,550.00 level.
The price was expected to be soon approached by the 55-hour simple moving average. The SMA could provide the needed resistance to pass the support of the 1,550.00 level.
Economic Calendar Analysis
On Friday, at 13:30 GMT both Canada and US will release their employment data. The release will consist of two numbers from Canada and three from the US.
The week's event historical data tables have been published. Click on the headline below to read the article.
XAU/USD short-term forecast
On Tuesday, the XAU/USD exchange rate tumbled to the 1,550.00 level. During today's morning, the rate re-tested the given level.
On the one hand, it is likely that yellow metal could depreciate against the US Dollar in the short term. Note that the nearest support level—the monthly S1, locates only at 1,543.44.
On the other hand, the price for gold could go upwards within the following trading session. It is unlikely that the rate could exceed the 1,570.00 area due to the resistance formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP.
Hourly Chart
On the daily candle chart, it can be observed how the rate broke the channel up pattern, which guided the rate's surge since the start of December.
Meanwhile, take into account that the metal is overbought, as indicated by daily simple moving averages, which are located near the 1,500.00 level.
Daily Chart
Neutral sentiment returns
On Wednesday, the Swiss Foreign Exchange gold sentiment was 54% short. Namely, 54% of open gold position volume was in short positions and 46% was in long positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were set to sell– 58% of orders were to sell and 42% to buy.
The orders were 72% to buy on Tuesday.