As the metal was approached by the 55-hour SMA, the price declined and tested the support of the recently discovered falling wedge pattern. On Friday morning, the pattern's support was pierced.
Economic Calendar Analysis
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT.
Next week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
As the resistance of the 55-hour simple moving average approached the yellow metal's price from above, it pushed it into a test of the lower trend line of the recently added declining wedge pattern. On Friday morning, the lower trend line of the pattern was pierced, as the metal shortly traded below it before retracing back up.
In the near term future, the price was expected to test the resistance of the 55-hour simple moving average. If the SMA gets passed, the rate would aim at the resistance of the 100-hour SMA, which was located near the 1.795.00 level.
On the other hand, if the 55-hour SMA pushes the price down, it would break the declining wedge pattern and look for support in round price levels.
Hourly Chart
On the daily candle chart, the rate has tested the support of the November low level of 1,765.30 and a 50.00% Fibonacci retracement level at 1,763.75.
Daily Candle Chart
Long sentiment grows
On Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 71% of open position volume was long.
During Thursday's trading, the sentiment was 68% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 67% to buy the metal.
Previously, the orders were 77% to buy and did not change since Tuesday.