XAU/USD short-term forecast
Currently, the yellow metal is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
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If the breakout occurs, a decline towards the 1720.00 area could be expected within this session.
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However, if the channel pattern holds, buyers are likely to drive the precious metal's price higher today.
Hourly Chart
XAU/USD daily charts review
Given that the XAU/USD exchange rate has rebounded from the four months low, buyers are likely to drive the commodity higher during this week's trading session. The potential target for bullish traders will be near the 55- day simple moving average at 1824.00.However, the yellow metal could encounter resistance near the 1760.00 within this week's trading sessions.
Daily Candle Chart
Read More: Technical Analysis
Traders are long on XAU/USD
On Thursday, the sentiment on the Swiss Foreign Exchange was 70% long.
On Friday, the market sentiment changed, as 69% of the volume was long.
Meanwhile, in the 1000-pip range around the metal's price, the pending orders were 53% to buy the precious metal.