This week, the top event of them all is scheduled for Wednesday. At 18:00 GMT, the US Federal Reserve is set to announce its Federal Funds Rate and release the FOMC Statement and Economic Projections. In general, the markets expect the US Fed to hike 0.75%. However, some market participants expect the US monetary policymakers to strengthen the USD even more, as they await a 1.00% hike.
Afterwards, at 18:30 GMT, the Chairman of the Federal Reserve Jerome Powell will host a press conference. Quite often, the press conference reverses the initial market moves that have been caused by the monetary decision. Namely, the Chairman states something, which the market interprets as either dovish or hawkish.
On Friday, at 13:45 GMT, the US PMIs are scheduled to be release. However, in most cases the market ignores this event.
XAU/USD short-term forecast
A resumption of the decline of the commodity price is expected to look for support in the 1,660.00, 1,655.00 and 1,650.00 levels. Further below, other round price levels might act as support.
On the other hand, a potential recovery of the commodity price might encounter resistance in the 2021 low level at 1,670.50 and the 1,680.00 level. Higher above, take into account the descending 100-hour simple moving average near 1,685.00.
XAU/USD daily charts review
On the daily candle chart, the price has passed below the 2021 and 2022 low level zone at 1,675.00/1,680.00. On September 19 it was observed that the previous support zone has turned into resistance.Daily Candle Chart
Pending orders are neutral
This week, the sentiment on the Swiss Foreign Exchange was 68% bullish. Namely, 68% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 50% to buy and sell the precious metal.