The squeeze of the yellow metal ended with a break out. Namely, the yellow metal's price broke out of it to the downside and reached below 1,935.00 level.
Afterwards, the rate retraced back up to the resistance of the 200-hour SMA, which provided resistance near 1,950.00 and caused a decline. By the middle of Thursday's trading, the rate had touched the 1,930.00 mark.
Economic Calendar Analysis
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released.
At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
Due to the fact that the rate has left above it the hourly simple moving averages, it could trade sideways until they catch up. As the SMAs catch up they would push the rate down.
In the meantime, it is possible that the metal's price could fall on its own, as it faces no technical support levels as low as 1,862.47 level. Namely, there is no technical support.
Meanwhile, the price's decline could be stopped by round price levels.
Hourly Chart
On the daily candle chart, the price could find support in the lower trend line of the channel up pattern, which has guided the surge that has been occurring since late March.
Daily Candle Chart
Traders remain long
Since Wednesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 55% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 58% to buy.
Previously, orders were 83% to buy.