The yellow metal has ended its half month long decline. It was indicated by the fact that the channel down pattern, which guided the price since November 18, was broken on Tuesday morning.
On Tuesday, the price could be impacted by the 15:00 GMT publication of the US ISM Manufacturing PMI.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
As a new month started, the yellow metal's price ended its decline in the borders of a channel down pattern. The price broke out of the pattern through its upper trend line. Moreover, the resistance of the 55-hour SMA was quickly broken.
By the middle of Tuesday's GMT trading hours, the price for gold had reached the 100-hour simple moving average. If the SMA fails to provide resistance, the price could reach for the 200-hour SMA near 1,827.25.
On the other hand, note that the 100-hour SMA was located at the 1,800.00 level, which on its own provided strong support during the last week. This round price level could keep the metal down.
Hourly Chart
On the daily candle chart, the yellow metal has reached the support of a large scale channel down pattern. In addition, a 50.00% Fibonacci retracement level was located at the 1,763.74 level. On Monday, this level kept the price from declining.
Meanwhile, the support of the 200-day SMA was passed on Friday together with the 1,800.00 mark.
Daily Candle Chart
Sentiment changes
Since Monday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 66% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to buy the metal.