Since Tuesday's early trading hours, the yellow metal had continued to trade below the resistance of the 55-hour simple moving average. In the meantime, it was spotted on Wednesday that the 1,914.50 level was providing support.
In the near term future, due to the mentioned SMA retreating lower, a squeeze was expected.
Economic Calendar Analysis
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The bullion's price is expected to be pushed into the support of the 1,914.50 level by the resistance of the 55-hour simple moving average. This event should result in a break out.
In the case of the rate breaking out upwards, the rate would test the 100-hour SAM near 1,935.00 first. Afterwards, the 200-hour SMA near 1,950.00 could provide resistance.
If the rate passes the support of the 1,914.50 level, it would immediately face the support of the monthly pivot point at 1,907.07.
Hourly Chart
On the daily candle chart, once again the price found support in the 38.20% Fibonacci retracement level at 1,916.78.
Daily Candle Chart
Traders go long
On Tuesday, on the Swiss Foreign Exchange the sentiment was almost neutral, as of total open position volume 54% was long.
The sentiment was 55% long on Wednesday.
Meanwhile, in the 1000-pip range around the metal's price the orders were 57% to buy.
Orders were 66% to buy on Tuesday.