On Friday, the yellow metal tested the resistance of the 1,875.00 level. In the meantime, the bullion had managed to pass the resistance of the 55-hour simple moving average.
In the near term future, the rate was expected to finish trading sideways and resume its decline.
Economic Calendar Analysis
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move.
On the same day, at 12:30 GMT the US are publishing GDP data.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
By mid-day on Friday, the yellow metal's price was once again approaching the support of the 1,850.00 level, which stopped the price drop on Thursday.
In the case of the 1,850.00 mark not holding, the rate would have no technical support as low as 1,756.77 where a monthly pivot point was located at. Due to that reason expect that the pair will find support in historical low and high levels and round price levels.
On the other hand, the rate could continue to fluctuate sideways above the 1,850.00 mark.
Hourly Chart
On the daily candle chart, the 100-day simple moving average approached the rate and began to provide support. It continued to do so on Friday, as the SMA strengthened the 1,850.00 mark.
Daily Candle Chart
Traders stick to long positions
Since Thursday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 58% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 68% to buy.