The XAU/USD exchange rate revealed a short-term descending channel.
From a theoretical point of view, it is likely that the rate could trade within the given channel.
Economic Calendar Analysis
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate revealed a short-term descending channel.
From a theoretical point of view, it is likely that the exchange rate could target the upper channel line located circa 1,969.00. Then, a reversal south could follow.
In the meantime, it is unlikely that bears could prevail in the market, and the price for gold could break the lower channel line circa 1,935.00.
Hourly Chart
On the daily candle chart, the metal has failed at another attempt to pass the resistance of the 61.80% Fibonacci retracement level at 1,977.55. Moreover, the pair passed the support of the 50.00% level at 1,947.16.
Due to that reason, the price had no support as low as the combination of the 38.20% Fibonacci and the 55-day SMA at 1,920.93/1,916.78.
Daily Candle Chart
Traders remain long
On Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 55% was long.
On Thursday, the sentiment was 57% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 72% to buy.