The yellow metal continued to trade between the 1,825.00 and 1,850.00 levels, as it had done since late Wednesday.
The only new update to the wide sideways trading was that the 55-hour SMA had approached the rate and done nothing. In addition, the price had begun to ignore the 200-hour SMA that provided support on Wednesday and Thursday.
On Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT.
Moreover, on that day the US Flash Manufacturing and Services Producers Managers Indices or PMIs are set to be published at 14:45 GMT.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
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
Note the added resistance and support zones. The resistance has been confirmed three times, and the support was confirmed two times. Usually, no zone or level hold out for more than three times. Due to that reason both of them could be broken.
If the resistance is passed, the rate would aim at the 23.60% Fibo at 1,860.59. Note that the zone was established initially by the resistance of the 100-hour SMA and the 1,850.00 mark. The most recent bounce off on Friday occurred, as the market participants expected this level to cause a decline. Namely, they sold even before it was reached.
On the other hand, if the support of the 1,825.00 mark gets passed, the rate would have no technical support. Due to that reason it is expected to reach for the psychological level of 1,800.00.
Hourly Chart
On the daily candle chart, the yellow metal has bounced off the resistance of the 55-day simple moving average. Moreover, it is retracing down after surging from the support of a large scale channel down pattern near the 1,765.00 level.
In theory, the metal should once again test the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
Daily Candle Chart
Traders remain short
Since Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long. This sentiment was reached on Tuesday when traders took profits from the surge.
The sentiment was 66% long on Monday.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 75% to buy the metal.