The yellow metal reached the 1,710.00 level just after midnight to Tuesday, GMT hours. Afterwards, throughout most of the day, the price was recovering.
In the near term future, the metal could be pushed down by the resistance of the 55-hour simple moving average, which approached the rate. However, a lower trend line of a large scale pattern was located at the 1,710.00 level. It could stop a decline.
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate.
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
The yellow metal's price found resistance in the previous support of the declining wedge pattern at the 1,760.00 level. It was followed by a decline, which on Tuesday found support in the 1,710.00 level. By the middle of the day's European trading, the rate had retraced back up.
The recovery of the rate was approaching the 38.20% Fibonacci retracement level at 1,729.33, which had provided resistance at midnight to Tuesday. In the meantime, the rate was being approached from above by the 55-hour simple moving average. The combination of these levels could cause a decline, which would test the support of the 1,710.00 and 1,700.00 levels.
In the case of the Fibo and SMA failing to provide resistance, the rate could recover to the 1,760.00 level and the 100-hour simple moving average.
Hourly Chart
On the daily candle chart, the pair has reached the support of the large scale channel down pattern, which captures the metal's decline since the start of August.
In the case of the pattern's trend line holding, the price should retrace back up to the 1,763.74 level where a 50.00% Fibonacci retracement level was located at.
On the other hand, if the trend line fails to hold, the currency exchange rate could reach the 61.80% Fibo at 1,690.05.
Daily Candle Chart
Traders are long on gold
On Friday and Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 72% of open position volume was long.
On Monday, 71% of volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 62% to buy the metal. The orders were 59% to sell on Monday.