As the FOMC Meeting Minutes strengthened the USD, the yellow metal's price dropped. The decline of the bullion stopped only near the 1,930.00 mark.
On Thursday, the pair traded between the 1,930.00 and 1,950.00 levels. It was expected to continue to do so until it would be approached by the hourly simple moving averages.
Economic Calendar Analysis
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The yellow metal is expected to trade sideways until it is approached by the 55, 100 and 200-hour simple moving averages, which on Thursday were located t 1,980.00 and 1,970.00 level.
However, the rate could also pass the resistance of the 1,950.00 level and reach for the SMAs at the 1,970.00 level.
On the other hand, a fundamental event could push the metal's price below the 1,930.00 level. In this case scenario the rate could reach for the support of the 1,910.00 level, which is strengthened by the monthly simple pivot point at 1,907.07.
Hourly Chart
On the daily candle chart, the price has dropped back into the zone, where it should be impacted by the support and resistance of the Fibonacci retracement levels of this summer's surge.
Daily Candle Chart
Sentiment remains balanced
Since Tuesday, on the Swiss Foreign Exchange the sentiment was neutral, as of total open position volume 52% was long.
The sentiment slightly changed on Thursday, as 51% of volume was short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 60% to buy. The orders were 93% to buy on Wednesday.
Traders have removed some of their buy orders that were set to buy the metal in the case of the start of a surge.