The XAU/USD exchange rate revealed a short-term descending channel.
From a theoretical point of view, it is likely that the rate could trade downwards within the given channel.
Economic Calendar Analysis
This week, data releases are scheduled to start on Tuesday. The US CPI data sets have not caused notable moves. Normal volatility remains intact during the announcement.
On Thursday, there will be the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
For more information read the weekly event review article by clicking on the link below.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate revealed a short-term descending channel. During Tuesday morning, the rate was trading at 1,800.00.
From a theoretical point of view, it is likely that the rate could re-test the lower channel line circa 1,791.00 in the nearest future.
Note that yellow metal is pressured by the 55– and 100-hour SMAs near 1,804.00. Thus, it is likely that the rate could trade along the lower channel line in the nearest future.
Hourly Chart
On the daily candle chart, gold is likely to gain support at the 1,796.00 level.
Meanwhile, note that the rate could be pressured by a trend line was drawn by connecting the 2019 and 2020 high levels.
Daily Candle Chart
Short sentiment grows
On Tuesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 60% was short.
Meanwhile, in the 1000-pip range around the current metal's price the orders were 57% to buy.