The sharp surge of the yellow metal's price ended just before the metal reached the 1,750.00 level.
Since the middle of Tuesday's trading, the price was trading sideways between the 100-hour simple moving average and the 1,750.00 level.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar.
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
In the case of the metal passing the resistance of the 1,750.00 level, the pair could test the March high levels above the 1,755.00 mark.
On the other hand, a passing of the support of the 100-hour SMA could reach the 55 and 200-hour SMAs below the 1,740.00 level.
Hourly Chart
On the daily chart, the support zone of the March low levels is not made up only of the recent lows. Research the 2020 March high levels and the 2020 April to June low levels. The zone was providing both resistance and support during last year.
Most recently, the price passed the resistance line, which kept the metal declining throughout 2021. Namely, the described support zone provided enough support for the metal to break the resistance line.
The surge of the metal should test the 50.00% Fibonacci retracement level of the 2020 low and high levels at 1,763.74. In addition, the Fibo was approached by the 55-day simple moving average.
Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 65% of open position volume was long.
On Tuesday, the sentiment changed to 66% long.
Note that the gold sentiment is largely bullish at all times due to long term holders. It is quite rare for it to be below 70%.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 80% to buy the metal.