The XAU/USD exchange rate continued to decline within the short-term descending channel.
From a theoretical point if view, it is likely that the rate could trade downwards within the given channel.
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XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate continued to trade within the short-term descending channel. During Wednesday morning, the rate pierced the upper channel line.
From a theoretical point of view, it is likely that yellow metal could continue to trade downwards within the predetermined channel.
Meanwhile, note that the rate could gain support from the 55– and 100-hour SMAs near 1,806.00. Thus, it is likely that the price for gold could target the monthly R1 at 1,821.43.
Hourly Chart
On the daily candle chart, gold is likely to gain support at the 1,796.00 level.
Meanwhile, note that the rate could be pressured by a trend line was drawn by connecting the 2019 and 2020 high levels.
Daily Candle Chart
Short sentiment grows
On Wednesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 59% was short.
Meanwhile, in the 1000-pip range around the current metal's price the orders were 57% to buy.