On December 15, the US Federal Reserve published its FOMC Statement and Economic Projections. In general, the federal funds rate remained unchanged. However, the bank announced that it would decrease its monthly treasury purchases by $20 billion and mortgage backed securities purchases by $10 billion.
Economic Calendar Analysis
On Wednesday, at 13:30 GMT, the US Dollar might react to the publication of the US Final GDP. Although, the only release for more than a year, which caused a noteworthy move was the latest one, September 30 2021.
On Thursday, at 13:30 GMT the US Durable Goods Orders and Core Durable Goods orders data will be published. However, during the prior months the data release has not caused increases of volatility.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the price of the commodity bounces off the resistance zone, a potential decline could look for support in the previous resistance of the 1,800.00 mark. Below the 1,800.00 level, the previous December high zone at 1,791.80/1,793.40 might stop a price drop.
Meanwhile, a surge above the 1,812.50/1,815.80 zone might find resistance in round price levels until the metal reaches the summer high level zone at 1,830.00/1,833.00.
XAU/USD daily charts review
On the daily candle chart, the fundamental event broke the resistance of the 50, 100 and 200-day simple moving averages and the October and November low level trend line. These levels were acting as resistance since November 31.Meanwhile, the daily candle chart can be used to more clearly explore previous high level zones at 1,830.00 and 1,880.00.
Daily Candle Chart
Long sentiment decreases
On Thursday, the sentiment on the Swiss Foreign Exchange was 60% bullish, as 60% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 67% to buy the precious metal.
On Friday, open position volume was 56% long. Pending orders were 71% to sell. It could be concluded that short term long traders have taken profits, and the take profits of long term traders are being approached.