On Friday morning, the pair reached above the moving averages and, at the time of writing, was surging. Economic Calendar Analysis
This week's notable events are over. Next week, the markets are set to concentrate on US Manufacturing PMI on Wednesday and employment data on Friday.
XAU/USD short-term forecast
A continuation of the commodity price is expected to encounter resistance in the 1,865.00/1,870.00 zone, which acted as resistance during this week's early trading. If the rate reaches above 1,870.00 a potential surge could be slowed down by the 1,890.00 and 1,910.00 levels. Both of these levels provided resistance in early May.
However, a decline of the price would look for support in the 1,840.90/1,842.15 range and the 200-hour simple moving average, before reaching the 1,832.00/1,836.00 zone.
XAU/USD daily charts review
On the daily candle chart, the price has broken the resistance of the 200-day simple moving average, which strengthened the 1,850.00 mark.Meanwhile, note that the metal confirmed the location of the lower trend line of the channel down pattern below the 1,800.00 level. In theory, the price should approach the zone that surrounds the 1,900.00 level.
Daily Candle Chart
Traders remove sell orders
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 64% bullish. Namely, 64% of open position volume was in long positions.
Meanwhile, on Friday, in the 1000-pip range around the metal's price, pending trade orders were 53% to buy the precious metal.
On Thursday, the orders were 65% to sell.