At mid-day on Tuesday, the yellow metal's price broke the resistance zone that surrounds the 1,850.00 psychological level. Next technical resistance, which the price could test would be the 23.60% Fibonacci retracement level at 1,860.60.
Future forecasts were based upon what would happen at the 1,860.60 level. Namely, whether or not the resistance level holds.
On Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT.
Moreover, on that day the US Flash Manufacturing and Services Producers Managers Indices or PMIs are set to be published at 14:45 GMT.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
At mid-day on Tuesday, the metal's price was heading to the resistance of the 1,860.59 level, where a 23.60% Fibonacci retracement level was located at.
In the case of this resistance level holding, the pair should retrace back down and look for support in the zone that surrounds the 1,850.00 level. Note that in the near term future this zone is set to be strengthened by the hourly simple moving averages that on Tuesday were located below it.
On the other hand, if the Fibonacci retracement level fails to provide resistance, the price would once again test the December 8 high level of 1,875.00.
Hourly Chart
On the daily candle chart, the yellow metal is trading between the 55 and 200-day simple moving averages. On Tuesday, the 55-day SMA was providing resistance near 1,876.00 and the 200-day SMA provided support at 1,811.80.
In theory, as the rate is still located in the borders of a channel down pattern, the metal should once again test the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
Daily Candle Chart
Traders remain long
Since the previous Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 52% to buy the metal.
The orders were 77% to buy on Monday.