The yellow metal has ended its sideways trading near the 1,950.00 level. The commodity price has surged and reached above the 2,000.00 level
During Tuesday morning GMT hours, the metal had no resistance as high as the 2,056.09 level, where a monthly pivot point was located at.
Economic Calendar Analysis
Despite the t week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD. Equivalent minor moves occurred on other pairs.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The metal is expected to reach for the simple monthly R1 pivot point at 2,056.09. That is due to the fact that the metal has broken the resistance of the hourly simple moving averages and faces no resistance.
In the meantime, take into account that Dukascopy Analytics have added a possible channel up pattern to the chart. The pattern's upper trend line could strengthen the resistance of the monthly pivot point.
On the other hand, the rate could consolidate recent gains by trading sideways until it reaches the support of the lower trend line of the channel up pattern. In addition, the pattern's trend line should be strengthened by the 55-hour simple moving average.
Hourly Chart
On the daily candle chart, the price has passed the last resistance of the Fibonacci retracement levels that were drawn by mapping this summer's surge. Next resistance would be the high level of early August.
Daily Candle Chart
Sentiment remains balanced
On Tuesday, on the Swiss Foreign Exchange the sentiment was neutral, as of total open position volume 52% was long.
On Monday, the sentiment was 50% short and 50% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 79% to buy.
Previously, the orders were 84% to buy.