The week before New Year's has no notable scheduled events. Expect the review of the first week of 2022 to be published mid-day on January 4.
XAU/USD short-term forecast
In the case of the price surging, the bullion would most likely test the resistance zone of the late November and mid-December high levels at 1,812.70/1,815.70. Above the high level zone, resistance might be found in round price levels like the 1,820.00 and 1,825.00. In addition, note the summer high level zone above the 1,830.00 mark.
However, a decline of the price could find support in the 50, 100 and 200-hour simple moving averages near 1,805.00, 1,800.00 and 1,795.00. Below the SMAs, the currency pair might find support in the pre-Christmas low level zone above the 1,785.00 level.
XAU/USD daily charts review
On the daily candle chart, the Federal Reserve announcement broke the resistance of the 50, 100 and 200-day simple moving averages and the October and November low level trend line. These levels were acting as resistance since November 31.Meanwhile, the daily candle chart can be used to more clearly explore previous high level zones at 1,830.00 and 1,880.00.
Daily Candle Chart
Traders are long
On Monday, the sentiment on the Swiss Foreign Exchange was 55% bullish, as 55% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 72% to buy the precious metal.