The resistance zone of 1,953/1,965.70 held out since the middle of Tuesday. At mid-day on Wednesday, the resistance caused a drop, which retraced back down to the 1,930.00 level.
In the meantime, the support of the hourly simple moving averages had approached the commodity price.
On Wednesday, the FOMC Meeting Minutes are set to be released at 19:00 GMT.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
On Wednesday, it was spotted that the 1,925.00 and 1,930.00 level were providing support to the commodity price. In addition, these levels were being approached by the 100-hour simple moving average.
If the 100-hour SMA manages to provide enough support, the yellow metal should once again test the resistance of the 1,953.00/1,965.70 zone.
On the other hand, a passing of the mentioned support levels could result in the metal retesting the support of the zone above the 1,900.00 level, which previously kept the metal down throughout December.
Hourly Chart
On the daily candle chart, note that the channel up pattern, which has guided the metal since the start of December.
Meanwhile, it was spotted on Wednesday that the 23.60% Fibonacci retracement level, which kept the price down in October, provided support at the 1,928.61 level.
In addition, note where the August and September high levels are located at.
Daily Candle Chart
Traders close long positions
Since January 4, the sentiment on the Swiss Foreign Exchange was 58% bullish, as 58% of open position volume was long.
On Wednesday, a part of the long positions was closed, as 53% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 75% to buy the metal. Previously, the orders were 52% to buy.