After three hours of making the attempt, the yellow metal passed the resistance of the channel down pattern on Wednesday morning. In addition, the rate passed the resistance of the 200-hour simple moving average.
Economic Calendar Analysis
On Thursday, at 13:30 GMT, expect the weekly US Unemployment Claims.
Next week, data releases, which could impact the USD/JPY start on Thursday. At 13:30 GMT, the weekly US Unemployment Claims are set to be published.
On Friday, the US Services and Manufacturing PMIs could cause a notable adjustment in the USD value.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
During Wednesday morning hours, the XAU/USD exchange rate broke the upper boundary of the short-term descending channel.
It is likely that yellow metal could bounce off the resistance level—the Fibo 23.60% at 1,860.59 and depreciate against the US Dollar in the short term. The rate could target the 1,820.00 area.
Meanwhile, note that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs in the 1,839.20/1,852.65 area. Thus, the price for gold could grow within the following trading session.
Hourly Chart
On the daily candle chart, on Wednesday, the metal passed the resistance of the 200-day simple moving average. In the meantime, note the resistance of the 55 and 100-day simple moving averages at 1,864.93 and 1,885.48.
Daily Candle Chart
Long sentiment decreases
Since Monday, the sentiment on the Swiss Foreign Exchange was 59% bullish, as 59% of open position volume was long.
On Wednesday, 56% of volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 79% to buy the metal.
Previously, the orders were 77% to buy.