© Dukascopy Bank SA
Yesterday's bullish correction failed to continue, as today the XAU/USD exchange rate experienced a slight bearish reaction. As for now, the price is about to test the weekly PP at 1769, however, if it fails to stop the prevailing movement downwards, then the exchange rate might reach the 20-day SMA, which in turn is expected to reverse the current downtrend. In addition, the overall indicator outlook shows a buy signal, therefore the interim bullish trend is expected to continue in the nearest future.
Traders' sentiment
SWFX market participants have slight bullish trend expectations, since 63% of traders hold long positions and 37% of traders hold short positions. The distribution of orders shows even stronger uptrend expectations, as 77% of traders ordered to buy and only 23% ordered to sell gold.
© Dukascopy Bank SA