Gold faces 200-hour SMA

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Since the middle of Tuesday's trading hours, the price for gold has been kept down by the combined resistance of the 200-hour simple moving average and the 1,781.00/1,783.00 zone.

Economic Calendar Analysis



On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.

On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.

Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.

The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.

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

In the case that the 200-hour simple moving average continues to push the price down, it could find support in the 55 and 100-hour simple moving averages. The 55-hour SMA was located on Wednesday at 1,768.00, and the 100-hour SMA was at 1,764.00. Below these levels, the 1,745.00 mark could act as support.

However, a surge above the 200-hour SMA and the 1,781.00/1,784.00 zone might reach the resistance of the 1,800.00 level.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, note that the bullion has been in a decline since the start of September, when it bounced off the summer high zone at 1,830.00.

Daily Candle Chart


Traders are long

Since Tuesday, the sentiment on the Swiss Foreign Exchange was 63% bullish, as 63% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 61% to buy the precious metal.

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