Gold trades between SMAs

Source: Dukascopy Bank SA
After reaching above the 1,915.00 level on Tuesday, the yellow metal's price began a decline. During the first part of Wednesday's trading, the price was fluctuating sideways below the resistance of the 100-hour simple moving average. In the meantime, the rate was being approached by the support of the 200-hour simple moving average.

Economic Calendar Analysis



There is one major notable event to watch this week. The US Employment data sets on Friday at 12:30 GMT are most likely going to impact the US Dollar and the price for gold.

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

In the near term future, the rate should get squeezed in between the 100 and 200-hour simple moving averages. Afterwards, a break out from the squeeze either up or down should occur.

If the price breaks out to the upside, it would face the resistance of the 55-hour SMA at 1,904.60 first. Afterwards, the 1,910.00 mark could provide resistance.

On the other hand, a potential decline below the 200-hour SMA could look for support in the zone below the 1,890.00 level.

Hourly Chart

XAU/USD daily charts review

The yellow metal continues to edge higher. On the daily candle chart, a 23.60% Fibonacci retracement level could provide resistance at 1,928.61.

Daily Candle Chart


Traders are bearish

Since Tuesday, the sentiment on the Swiss Foreign Exchange was been 54% bearish, as 54% of open position volume was short.

Meanwhile, in the 1000-pip range around the metal's price the pending orders were 56% to buy the metal.

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