Gold drops due to SMA

Note: This section contains information in English only.
Source: Dukascopy Bank SA
After making four attempts to pass the resistance of the 200-hour simple moving average and even piercing it during the Federal Reserve caused volatility, on Thursday, the yellow metal's price plummeted to the 1,750.00 mark.

Economic Calendar Analysis



On September 22, the US Federal Reserve Federal open Markets Committee published its Economic Projections and Statement in addition to the Federal Funds Rate. Namely, US Monetary policy was revealed. In general, the bank revealed that inflation in US had been picking up. Due to that reason, the central bank will keep its policy intact until the 2% inflation target is reached.


XAU/USD short-term forecast

In the case of the metal's price passing the 1,750.00 level, the commodity could look for support in the September 18 low level at 1,742.50.

Meanwhile, a potential recovery of the metal could find resistance in the 100-hour simple moving average at 1,765.00, 55-hour SMA at 1,771.30 and the 200-hour SMA at 1,776.35.

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.

Daily Candle Chart


Long sentiment increases

Since Tuesday, the sentiment on the Swiss Foreign Exchange was 63% bullish, as 63% of open position volume was in long positions.

On Thursday, 65% 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 buy the precious metal.

On Wednesday, 61% of volume was long.

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