Since finding resistance in the 1,815.00 mark, the yellow metal's price has been trading sideways between the 1,800.00 and 1,815.00 levels.
In the meantime, the 55-hour simple moving average had caught up with the price. It was spotted that on Tuesday and Wednesday the SMA was providing the price with support.
During the week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
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XAU/USD short-term forecast
It is likely that yellow metal could gain support from the 55– and 200-hour moving averages. Thus, the rate could re-test the upper line of the rising wedge pattern circa 1,820.00/1,825.00.
If the pattern holds, the exchange rate could bounce off and decline to the SMAs within the following trading session.
Hourly Chart
On the daily candle chart, the rate has tested the support of the November low level of 1,765.30 and a 50.00% Fibonacci retracement level at 1,763.75.
Daily Candle Chart
Long sentiment is intact
Since Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 68% of open position volume was long.
On Monday, 70% of volume was long. These positions were assumed to have gained during the recent surge.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to buy the metal.
On Tuesday, the orders were 65% to buy.