Another attempt of gold to surge has failed. The yellow metal has reached down to the support of the 200-hour simple moving average.
Meanwhile, it has been spotted that the hourly candle chart needs a review. It is expected that a full review of the chart will be conducted on Thursday.
During this week there are various macroeconomic data releases that will impact currency exchange rates. Moreover, there will be a Federal Funds Rate announcement.
During Wednesday's trading session there will be two events to watch.
First will be the ISM Manufacturing PMI, which will be covered this week for one reason. To check whether this data release is significant enough to be on the economic calendars.
On the same day note that the most important event of the month will take place. At 18:00 GMT the US Federal Funds Rate and FOMC Statement will be published. The US Federal Reserve will reveal the future of the US Dollar.
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.
On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed south from the psychological level at 1,286.00. During Wednesday's morning hours, the rate reversed north from the 200-hour SMA at 1,277.99.
Given that the price for gold is pressured by the 55– and 100-hour moving averages, it is likely, that some downside potential prevail in the market in the short run. In this case, the rate could decline to the 1,276.00 level.
However, if the given support holds, it is expected, that gold could trade sideways between the given SMAs. Also, is the given resistance does not hold, the rate could jump to the monthly PP at 1,287.27.
Hourly Chart
On the daily candle chart it is observed that the metal is struggling to pass the resistance of the 1,290.00 level.Meanwhile, note that the monthly support level is gone, as a new month has started. The price has no support as low as the 1,263.70 level on the daily candle chart.
It is unlikely, that the price for gold could jump higher than 1,292.00 due to the resistance of the 100-day SMA and the 23.60% Fibonacci retracement level.
Daily Chart
Traders continue
On the Swiss Foreign Exchange, 62% of open position volume is in short positions.
Meanwhile, the trader set up pending orders in the 1000-base point range around the metal's current price were set to buy. Namely, 56% of trade orders were set to buy.