On Friday morning, the rate returned to trade above the 1,900.00 level. Namely, the commodity price was fluctuating between the 1,905.00 and 1,910.00 levels.
In the near term future, the metal was expected to continue to respect round price levels.
Economic Calendar Analysis
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
Next week, on Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Since Thursday, the XAU/USD exchange rate has been testing the resistance level—the monthly PP at 1,909.29.
It is likely that yellow metal could gain support from the 55-, 100– and 200-hour SMAs in the 1,901.30/1,908.00 area. Thus, some upside potential could prevail in the market.
However, if the predetermined resistance holds, the rate could reverse south and re-test the psychological level at 1,890.00 in the short term.
Hourly Chart
On the daily candle chart, since Wednesday, the rate was fluctuating between two Fibonacci retracement levels.
Resistance was provided by the 38.20% Fibo at 1,916.78, which previously did not manage to provide support.
In the meantime, support was provided by a 23.60% Fibonacci retracement level at 1,879.18. In addition, the Fibo could soon be strengthened by the approaching 100-day SMA.
Daily Candle Chart
Traders are long
Since Thursday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 61% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 76% to buy the metal.
The orders were 88% to buy on Thursday.