On Wednesday, the yellow metal's price fluctuated near the 1,290.00 level. During the second half of the day the price had fallen below the support of hourly simple moving averages.
After falling below the SMAs the metal had no technical support as low as 1,275.00. In theory, the metal was about to fall.
Until Friday there are no notable macroeconomic data releases scheduled to take place.
On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.
Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
XAU/USD short term forecast
On Tuesday, the price for gold raised towards the 100-hour SMA, currently located at 1,293.16. On Wednesday morning, the XAU/USD exchange rate tried to surpass the given resistance.
If the given resistance holds, it is likely that the market remains down-oriented. A possible downside target is the psychological level at the 1,285.00 mark.
Hourly Chart
On the daily chart, the commodity price had reached below the lower trend line of a long term ascending channel pattern.Meanwhile, note that the rate has additional support on the daily chart. Namely, the 100-day SMA was providing support near 1,280.00.
Daily Chart
Traders continue to short the metal
On Wednesday, 58% of the open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders in that range were set to buy in 57% of cases.