On Friday, the US Dollar and the Canadian Dollar are set to react to the monthly US and Canadian employment data. Among the data will be the employment changes and unemployment rates of the two countries.
XAU/USD short-term forecast
A continuation of the decline might look for support in the 50 and 100-hour simple moving averages near 1,880.00. In addition, note the 1,872.00/1,878.00 zone, which has acted as both support and resistance.
On the other hand, a potential recovery is highly likely going to encounter resistance in round price levels.
XAU/USD daily charts review
On the daily candle chart, the metal's price has moved below the support zone, which surrounds the 1,900.00 mark and the 100-day simple moving average. Next support on the chart is the 200-day simple moving average near 1,840.00.Daily Candle Chart
Traders are long
Since Wednesday, 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 50% to buy and sell the precious metal.