During the week, it is all about the US Dollar associated fundamental data, surveys and central bank policy. Only exception is the Bank of England rate decision on Thursday.
On Tuesday, the release of the US ISM Manufacturing Purchasing Managers Index survey results and the JOLTS Job Openings could cause a move of the US Dollar.
On Wednesday, the top event of them all will take place. At 18:00 GMT, the US Federal Reserve is set to publish its Federal Funds Rate and FOMC Statement. The market currently expects a 0.75% hike. Deviations from the 0.75% forecast are bound to cause an adjustment of the US Dollar's value.
Afterwards, at 18:30 GMT, the Chairman of the Federal Reserve Jerome Powell will host a press conference.
On Thursday, the Bank of England is scheduled to also hike its interest rate at 12:00 GMT. The central bank is bound to react to and comment on recent political events in the United Kingdom.
On the same day at 14:00 GMT, the US ISM Services PMI is expected to impact the value of the US Dollar.
On Friday, more important data will be published. At 12:30 GMT, the US Unemployment Rate, Non-Farm Employment Change and Average Hourly Earnings are expected to cause US Dollar's moves.
XAU/USD short-term forecast
A continuation of the decline is expected to find support in two zones. First one is the 1,639.60/1,642.00 zone. The second one is 1,615.20/1,621.65. However, round price levels might stop a decline, before 1,620.00 would be reached.
On the other hand, a price recovery could encounter resistance in the 50 and 100-hour simple moving averages, the 1,665.00, 1,670.00 and 1,675.00 levels. Higher above, note the mid-October high level zone at 1,682.50/1,683.85.
XAU/USD daily charts review
On the daily candle chart, the price found support in the September low level near 1,615.00. Currently, note that the 50-day SMA is strengthening resistance near 1,680.00. Meanwhile, the 100-day SMA is located near 1,710.00.Daily Candle Chart
Traders are long
Before the US Dollar affecting events, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 65% to buy the precious metal.