At midnight to Monday GMT hours, the yellow metal made an attempt to pass the resistance zone that starts below the 1,900.00 level. The price's attempt to surge was stopped by the 1,900.00 level's psychological resistance. It resulted in a decline to the 200-hour SMA, which has kept the price up since December 16.
By the start of US trading hours, the price had recovered and was about to once again test the mentioned resistance zone.
On Thursday, at 13:30 GMT, the US Jobless Claims could cause a minor move on all USD pairs and assets that are traded in US Dollars.
XAU/USD short-term forecast
In regards to the near term future, the metal's price was expected to once again test the resistance of the 1,895.00/1,907.00 zone. In the case of this resistance failing, the pair would find resistance in round price levels. For example, the 1,920.00 level could provide resistance, as it did in October.
On the other hand, a bounce off from the resistance would once again look for support. The support could be provided by the 55, 100 and 200-hour simple moving average in the 1,880.00/1,870.00 area.
If the SMAs fail to push the price up, the 23.60% Fibonacci retracement level at 1,860.60 could keep the rate up.
Hourly Chart
On the daily candle chart, the 100-day SMA caused a reversal by providing resistance on December 21. On December 28, the price was once again kept down by the SMA.
Meanwhile, the rate remains in a minor channel up pattern that captures the metal's December recovery. In theory, this pattern should guide the rate to the upper trend line of the channel down that represents the metal's larger decline, which has been occurring since August.
Daily Candle Chart
Sentiment is unchanged
On Monday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 59% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to buy the metal.