After reaching above the 1,970.00 mark, the yellow metal began a decline on Tuesday. The decline was stopped and the price reversed by the combination of the support of the lower trend line of the ascending wedge pattern and the 100-hour simple moving average.
On Wednesday morning, the rate resumed its surge and once again tested the resistance of the pivot point at 1,969.20 and 1,970.00.
Economic Calendar Analysis
On Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement at 18:00 GMT.
On Thursday, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The previous forecast has not changed, as the price removed some of the overbought pressure by retracing down and has returned to the previously tested resistance.
In the case of the pair passing the 1,970.00 level again, it is likely that the yellow metal could continue to appreciate against the US Dollar within the given pattern in the short term.
Meanwhile, if the predetermined resistance level holds, it is possible that the exchange rate could trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, the metal aims at the resistance of the 61.80% Fibonacci retracement level at 1,977.55. If this level would fail to keep the price down, as it did in August, there would be no resistance as high as the previous high level of 2,075.00.
In the meantime, the support of the 55-day simple moving average had approached the metal. It signals that a surge of the price could occur.
Daily Candle Chart
Traders remain long
Since Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 57% was long.
On Wednesday, the sentiment decreased to 56% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 78% to buy.