On April 26, The XAU/USD exchange rate bounced off a support level formed by the 200– hour simple moving average at 1770.0. As a result, the commodity surged by 100 pips or 0.61% during Monday's trading session.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
On Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT.
On Thursday, at 12:30 GMT, the US Advance GDP will be released.
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
If the breakout occurs, a decline towards the 1760.00 area could be expected within this session.
However, if the channel pattern holds, buyers are likely to drive the precious metal higher during the following trading session.
Hourly Chart
XAU/USD short-term daily review
On the daily chart, the XAU/USD exchange rate passed the resistance of the 55-day simple moving average and almost pierced the 100-hour SMA. The rate has continued to trade among the 55-hour, 100-hour SMAs and the 50.00% Fibonacci retracement level.Previously, the SMA started to strengthen the resistance of the 50.00% Fibonacci retracement level of the 2020 low and high levels at 1,763.74.
Meanwhile, note that the 1,800.00 level was being strengthened by the resistance of the 100-day simple moving average.
Daily Candle Chart
Traders set up buy orders
On Monday, the sentiment on the Swiss Foreign Exchange was 59% bullish, as 59% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 75% to buy the metal.
Previously, the orders were 67% to buy.