Gold fails to pass 1,900.00

Source: Dukascopy Bank SA

After two tests to pass the resistance zone that starts near the 1,900.00 level, the yellow metal's price retreated on Monday to the support of the 200-hour simple moving average.

Since the late hours of Monday's trading up to the start of Tuesday's US trading, the commodity price was kept up by the 200-hour SMA.

Economic Calendar Analysis



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

Monday's forecast had not changed, as the metal remained impacted by the same support level of the 200-hour SMA and still faced the resistance zone that surrounds the 1,900.00 level.

The metal's price is 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 averages in the 1,880.00/1,875.00 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.

On Tuesday, the rate was finding support in the combination of the 55-day SMA and the lower trend line of the junior pattern.

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.

On Tuesday, 60% of volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price the pending orders were 74% to buy the metal

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