The XAU/USD exchange rate re-tested the upper boundary of the medium-term descending channel .
Given that the rate is squeezed by the 55-, 100- and 200-hour SMAs, it is likely that the price for gold could consolidate.
Economic Calendar Analysis
This week, notable data releases are set to start on Tuesday.
On Wednesday, at 01:00 GMT the Reserve Bank of New Zealand is scheduled to make a rate announcement. This event is expected to cause the largest move of the week.
Later in the day, the weekly US Crude Oil Inventories will be released. This week, the data will be out at 15:30 GMT.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. Last but not least, on Friday the US Retail Sales data will be out also at 13:30 GMT.
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 Monday, the XAU/USD exchange rate reversed south from the upper boundary of the medium-term descending channel. During today's morning, was trading at 1,568.00.
Given that yellow metal is pressured by the 55– and 200-hour SMAs, it is likely that some downside potential could prevail in the market. In this case the rate could target the 1,560.00 level.
However, note that the exchange rate would have to surpass the 100-hour SMA near 1,565.00. Thus, if the given support holds, gold could consolidate against the US Dollar.
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
Traders are short on gold
On Tuesday, the Swiss Foreign Exchange gold sentiment was 54% short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were neutral – 50% of orders were to sell and 50% to buy.