On Thursday, the XAU/USD exchange rate plunged by 312 pips or 1.74%. A breakout occurred through the lower boundary of an ascending channel pattern during Thursday's trading session.
Economic Calendar Analysis
Notable events for this week have ended. Expect the next week's analysis to be published this evening in the Fundamental Analysis section.
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
According to an initial forecast and given that a breakout has occurred, the commodity was likely to continue to edge lower during the following trading session. The possible target for sellers could be near yesterday's low at 1755.00.
However, by the US trading hours, as suggested by technical indicators on the daily time-frame chart, the precious metal gained strength against the US Dollar within this session.
Hourly Chart
XAU/USD short-term daily review
On the daily chart, the XAU/USD exchange rate is continuing to trade among the 55-hour, 100-hour SMAs and the 50.00% Fibonacci retracement level.Previously, the SMA started to strengthen the resistance of the 50.00% Fibonacci retracement level of the 2020 low and high levels at 1,763.74.
Meanwhile, note that the 1,800.00 level was being strengthened by the resistance of the 100-day simple moving average.
Daily Candle Chart
Traders remain long
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish, as 62% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 57% to buy the metal. Previously, the orders were 81% to buy.