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 ongoing price surge is expected to be slowed down by the upper trend line of the channel up pattern, which crosses the 1,720.00/1,730.00 range. Eventually, a potential surge could encounter resistance in the 1,730.00 level.
On the other hand, if the metal consolidates its gains by declining, support could be provided by the 1,700.00 mark, before the 1,685.00 and 1,680.00 levels are reached.
XAU/USD daily charts review
On the daily candle chart, the price has reached above the low level zone at 1,675.00/1,680.00.In the near term future, resistance could be found in the combination of the upper trend line of the 2022 channel down pattern and the 50-day simple moving average. Higher above, note the 100-day SMA near 1,750.00.
Daily Candle Chart
Traders close long positions
On Tuesday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 50% to sell and buy the precious metal.
On Monday, positions were 64% long and orders were 57% to sell.