Since the FOMC drop on Wednesday, the yellow metal has traded sideways between the 1,930.00 and 1,950.00 levels.
However, on Friday, the rate was being approached by the resistance of the hourly simple moving averages, which could end the sideways trading.
Economic Calendar Analysis
Next week, as the last week of the month, the following week is expected to be a quiet one. However, there are events that should be watched in the case a sharp move occurs.
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
In the near term future, the metal's sideways trading could end, as it is approached by the 55, 100 and 200-hour simple moving averages. The SMAs on Friday morning were located at the 1,960.00 level.
In the case of a decline the commodity price would pierce the 1,930.00 level and aim at the simple monthly pivot point at the 1,907.07 level.
Hourly Chart
On the daily candle chart, the price has dropped back into the zone, where it should be impacted by the support and resistance of the Fibonacci retracement levels of this summer's surge.
Daily Candle Chart
Sentiment remains balanced
On Friday, on the Swiss Foreign Exchange the sentiment was neutral, as of total open position volume 51% was long.
The sentiment was 51% short on Thursday.
Meanwhile, in the 1000-pip range around the metal's price the orders were 91% to buy.
Orders were 60% to buy on Thursday.