On Wednesday, the rate had recovered to the 1,740.00 level. Meanwhile, Dukascopy Analytics spotted that the pair has been declining in a channel down pattern since September 23. On Wednesday morning, the yellow metal's price was testing the resistance of the mentioned channel.
In addition, the 55-hour SMA had approached the rate from above and was located near 1,745.00.
Economic Calendar Analysis
On Thursday, at the same time as the US GDP, the US weekly Unemployment Claims could also impact the USD.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results.
XAU/USD short-term forecast
If the rate bounces off the combined resistance of the upper trend line of the channel down and the 55-hour simple moving average, a test of the support of the 1,730.00 could occur. Below the 1,730.00 mark, the 1,700.00 could serve as a major support level.
On the other hand, a potential passing of the resistance levels would almost immediately find resistance in the 100-hour simple moving average at 1.750.00. Above the 100-hour SMA, the 200-hour SMA at 1,757.00 might serve as resistance.
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. The decline has been occurring in a channel down pattern, which is aimed at the August low level at 1,685.00.Daily Candle Chart
Traders are long on gold
On Wednesday, the sentiment on the Swiss Foreign Exchange was 70% bullish, as 70% 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.