The support zone of the 1,830.00/1,835.00 levels failed. The rate passed the zone and declined. By the middle of US trading hours, the metal's price had touched the 1,785.00 mark.
In the near term future, the metal could look for support in the November low level at 1,765.00.
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XAU/USD short-term forecast
At first glance it appears that the yellow metal's price has no support as low as the 38.20% Fibonacci retracement level near 1,730.00. However, by researching other timeframes, Dukascopy Analytics discovered that the November low level at 1,765.00 could reverse the price's decline.
The most likely case is that the metal would reach for the 1,765.00 level and trade above it until the hourly simple moving averages approach the price. Moreover, the 1,765.00 could even cause a recovery of the bullion.
On the other hand, if the 1,765.00 low level fails to provide support, the metal could reach for new low levels.
Hourly Chart
On the daily candle chart, the metal has passed the 38.20% Fibonacci retracement level of the 2020 high and low levels. Meanwhile, note that the previously mentioned November low level is actually the 50.00% Fibonacci retracement level of the 2020 low and high.
Meanwhile, as reported during the week, the daily simple moving averages were ignored by the commodity price.
Daily Candle Chart
Long sentiment increases
Since Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 59% of open position volume was long.
On Wednesday, the sentiment had slightly changed as 60% of volume was long.
On Thursday, the sentiment was 67% long. Short term short traders appeared to have taken profits from the metal's decline.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 83% to buy the metal. On Wednesday, the orders were 72% to buy.