This week, traders will be initially looking at the ISM Manufacturing Purchasing Managers Index survey results on Wednesday at 14:00 GMT. The publication is set to reveal how the US Manufacturing industry is looking at the future and with it impact the value of the US Dollar.
On Thursday, minor USD moves could occur due to the ADP Non-Farm Employment Change at 12:15 GMT and the US Unemployment Claims at 12:30 GMT. Minor moves are usually around ten to fifteen base points.
On Friday, one of the top events of the whole market will occur. Namely, the release of the US employment data at 12:30 is set to shake up the market. The release will consist of the US Unemployment Rate, Average Hourly Earnings Change and the Non-Farm Employment Change.
XAU/USD short-term forecast
A resumption of the commodity price surge is expected to encounter resistance in the 1,865.00/1,870.00 zone, which acted as resistance during this week's early trading. If the rate reaches above 1,870.00 a potential surge could be slowed down by the 1,890.00 and 1,910.00 levels. Both of these levels provided resistance in early May.
However, a decline of the price would look for support in the 1,840.90/1,842.15 range and the 200-hour simple moving average, before reaching the 1,832.00/1,836.00 zone.
XAU/USD daily charts review
On the daily candle chart, the price has broken the resistance of the 200-day simple moving average, which strengthened the 1,850.00 mark.Meanwhile, note that the metal confirmed the location of the lower trend line of the channel down pattern below the 1,800.00 level. In theory, the price should approach the zone that surrounds the 1,900.00 level.
Daily Candle Chart
Situation is unchanged
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 64% bullish. Namely, 64% of open position volume was in long positions.
Meanwhile, on Friday, in the 1000-pip range around the metal's price, pending trade orders were 53% to buy the precious metal.
On Monday, the open positions were still 64% long and pending orders were also unchanged at 53% to buy.