On Wednesday, the US ISM Services PMI is likely going to cause USD moves. The Monday's Manufacturing PMI caused a broad decline of the US Dollar.
Above all, on Friday, the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to move the markets.
XAU/USD short-term forecast
An extension of the decline of the price for gold could look for support in the 1,700.00 mark and the 50-hour simple moving average. Further below, note the 1,685.00 and 1,680.00 levels.
On the other hand, a resumption of the commodity price surge is highly likely set to face the 1,730.00 level, before approaching the 1,750.00 level and the late August high at 1,765.10.
XAU/USD daily charts review
On the daily candle chart, the price has pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,715.00. Higher above, note the 100-day SMA near 1,750.00.Daily Candle Chart
Traders close long positions
On Wednesday, the sentiment on the Swiss Foreign Exchange was 59% bullish. Namely, 59% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 57% to sell the precious metal.
On Monday, positions were 64% long and orders were 57% to sell. On Tuesday, the positions were 61% bullish and orders were balanced.
Traders have continued to take profits.