The yellow metal has broken the resistance of the 1,785.00/1,790.00 resistance zone in a sharp swing move upwards.
The swing was stopped by the upper trend line of a rising wedge pattern on the hourly candle chart and the 2019 and 2020 high level connecting line on the daily candle chart.
Economic Calendar Analysis
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
XAU/USD short-term forecast
On the hourly candle chart, the yellow metal's price was testing the resistance of an ascending wedge pattern near the 1,800.00 level. Take into account that the 1,800.00 mark is providing resistance on its own.
If the 1,800.00 level fails to hold, the metal would have no technical resistance as high as the monthly R1 simple pivot point at 1,821.43. In addition, round price levels could provide resistance.
On the other hand, if the resistance holds, the pair should retreat down to the 55 hour simple moving average. Moreover, the 1,785.00/1,790.00 level could provide support.
Hourly Chart
On the daily candle chart, the rate was not only testing, but actually pierced the resistance line of the 2019 and 2020 high levels. Take into account that the resistance line is drawn by not using the actual high levels, but the closing and open prices of the daily candle charts.
Due to that reason, another trend line of the absolute highs has been added. The zone between the two lines can be seen as a resistance zone.
Daily Candle
Short sentiment grows
Since Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as it was 63% short.
On Wednesday, the sentiment changed, as 66% of volume was in short positions
Meanwhile, in the 1000-pip range around the current metal's price the orders were 75% to buy.
Previously, the orders were 60% to buy.