Gold found support in the 1,278.00 level. The event resulted in a surge of five dollars by the middle of Tuesday's trading session.
Meanwhile, note that the hourly candle chart has been updated.
During this week there are various macroeconomic data releases that will impact currency exchange rates. Moreover, there will be a Federal Funds Rate announcement.
On Tuesday, the Canadian GDP is expected to cause a significant impact on the CAD pairs at 12:30 GMT.
During Wednesday's trading session there will be two events to watch. First will be the ISM Manufacturing PMI, which will be covered this week for one reason. To once more show that this data release is not significant enough to be on economic calendars, as it causes no increases of volatility.
On the other hand, the opposite might be revealed during the analysis.
On the same day note that the most important event of the month will take place. At 18:00 GMT the US Federal Funds Rate and FOMC Statement will be published. The US Federal Reserve will reveal the future of the US Dollar.
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.
On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed north from the trend line at 1,278.40.
Given that the rate is supported by the 55-hour SMA at 1,282.84, it is likely, that some upside potential could prevail in the market. The price for gold could target the psychological level at 1,288.00. Otherwise, the rate could trade sideways, trying to breach the given support.
It is unlikely, that the price for gold could slump lower than the 1,278.00 mark due to the support formed by a combination of the 100– and 200-hour moving averages.
Hourly Chart
As apparent on the cart, the exchange rate is still supported by the monthly S1 at the 1,274.13 mark.It is unlikely, that the price for gold could jump higher than 1,292.00 due to the resistance of the 100-day SMA and the 23.60% Fibonacci retracement level.
Daily Chart
Traders go short
On the Swiss Foreign Exchange, 62% of open position volume was in short positions.
Meanwhile, the trader set up pending orders in the 1000-base point range around the metal's current price were balanced 50 vs 50.