This week, the markets will watch the US Employment data release. It is scheduled for Friday 12:30 GMT. The data release moves all of the financial markets, as it causes a move in the US Dollar.
US Employment data release consists of the US Average Hourly Earnings change, Non-Farm Payrolls and Unemployment rate.
XAU/USD short-term forecast
The ongoing decline could look for support in the 2,320.00 level that acted as support during the prior week. Further below, note the 2,300.00 mark.
In the case of the price recovery, the 50, 100 and 200-hour simple moving averages are expected to act as resistance. In addition, note that the 2,350.00 and 2,360.00 have kept the price down for almost a week.
XAU/USD daily charts review
On the daily candle chart, the metal has moved below the 50-day simple moving average, as it appears to have failed to act as support.Daily Candle Chart
Traders remain short
On Monday, traders were 68% bearish. Namely, 68% of all open position volume at Dukascopy was in short positions.
In the meantime, more traders were set to go short. 100% of all pending orders in the 1000 point range around the current metal's price are to sell.
By late Tuesday's trading, the positions were 66% short and orders were 63% to sell.