The recovery of the yellow metal has continued, as on Wednesday the price of the commodity reached the 1,830.00 level. This level previously provided both resistance and support to the price on November 23 and 24.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
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
It is likely that yellow metal could gain support from the 200-hour moving average near 1,820.00. In this case the price for gold could target the resistance level—the Fibo 23.60% of the 2018 low and the 2020 high levels at 1,860.59.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 1,975.00 due to the support provided by the 55– and 100-hour SMAs.
Hourly Chart
On the daily candle chart, the yellow metal is recovering after bouncing off the support of the large scale channel down pattern. Next target for the rate was the 38.20% Fibonacci retracement level of the 2020 low and high levels at 1,837.43.
Daily Candle Chart
Sentiment changes
Since Monday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 66% was long.
On Wednesday, the sentiment was 67% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 67% to buy the metal.