On Tuesday, the precious metal gold declined by 95 pips or 0.54% against the US Dollar. The commodity breached the 55– and 200– hour SMAs during yesterday's trading session.
During the Asian trading session, the exchange rate has been trading near the lower line of a descending channel pattern and was set for a breakout.
On Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT.
On Thursday, at 12:30 GMT, the US Advance GDP will be released.
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
As forecast, the currency exchange rate broke the descending channel pattern and surged to the 1774.00 level, almost piercing the 55-hour simple moving average.
Hourly Chart
XAU/USD short-term daily review
On the daily chart, the XAU/USD exchange rate passed the resistance of the 55-day simple moving average and almost pierced the 100-hour SMA last week. The rate has continued to trade among the 55-hour, 100-hour SMAs and the 50.00% Fibonacci retracement level, piercing the last on Wednesday.Previously, the SMA started to strengthen the resistance of the 50.00% Fibonacci retracement level of the 2020 low and high levels at 1,763.74.
Meanwhile, note that the 1,800.00 level was being strengthened by the resistance of the 100-day simple moving average.
Daily Candle Chart
Traders remain long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish, as 62% of open position volume was long. Previously, 59% of volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 74% to buy the metal.