Meanwhile, Dukascopy Analytics marked on the chart the channel up pattern, which has guided the commodity price from the May 16 low level. Economic Calendar Analysis
On Wednesday, the rate is bound to move due to the release of the Federal Open Market Committee Meeting Minutes at 18:00 GMT.
On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
XAU/USD short-term forecast
If the commodity price surges, it would once again test the resistance of the 1,860.00 and 1,870.00 levels. Above these round levels, expect the 1,880.00 mark and the upper trend line of the channel up pattern to act as resistance.
On the other hand, a decline below 1,850.00 is set to look for support in the lower trend line of the channel up pattern, before approaching the support zone near 1,835.00 and the 200-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the price has broken the resistance of the 200-day simple moving average, which strengthened the 1,850.00 mark.Meanwhile, note that the metal confirmed the location of the lower trend line of the channel down pattern below the 1,800.00 level. In theory, the price should approach the zone that surrounds the 1,900.00 level.
Daily Candle Chart
Long sentiment increases
Since Monday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
On Wednesday, open positions were 64% long.
Meanwhile, on Wednesday, in the 1000-pip range around the metal's price, pending trade orders were 53% to buy the precious metal.
On Tuesday, the orders were 50% to sell and to buy.