XAU/USD short-term forecast
If the bullion continues to decline, it could do so in the borders of the pattern. A potential decline of this kind would find support in various round price levels. On the other hand, note that the commodity could be considered oversold. Due to that reason, a potential recovery of some sort might occur.
Hourly ChartXAU/USD daily charts review
On the daily candle chart, the rally of the USD has caused a drop of the price for gold to plummet below the 50, 100 and 200-day simple moving averages and a breaking of the channel, which captured the surge since early December.In regards to larger scale support, note the November and December low level zone below the 1,760.00 mark.
Daily Candle Chart
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Traders go long
On Thursday, the sentiment on the Swiss Foreign Exchange was 52% bearish, as 52% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 66% to buy the precious metal.
On Friday, traders went long, as the sentiment was 54% long and orders were 75% to buy.