Gold breaks minor pattern

Source: Dukascopy Bank SA
The yellow metal has clearly broken the resistance of the channel down pattern. It occurred in a sharp four hour jump, which also passed the resistance of the 55, 100 and 200-hour simple moving averages. Eventually, the metal's price was stopped by the 1,765.00 level's resistance.

On Friday, the pair traded sideways around the 200-hour SMA and the 1,755.00 level.

Economic Calendar Analysis



On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results.

On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates.

On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility.

On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD.

On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.

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

If the metal's price surges, it would once again test the resistance of the 1,765.00 mark. On the other hand, a potential decline could find support in the 1,745.00 level and the 55 and 100-hour simple moving averages.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, note that the bullion has been in a decline since the start of September, when it bounced off the summer high zone at 1,830.00. The decline has been occurring in a channel down pattern, which is aimed at the August low level at 1,685.00.

Daily Candle Chart


Traders are long on gold

Since Wednesday, the sentiment on the Swiss Foreign Exchange was 70% bullish, as 70% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 66% to buy the precious metal.

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