© Dukascopy Bank SA
Today the XAU/USD exchange rate experienced a huge movement downwards, which has already managed to overcome the lower Bollinger band, and at the particular moment the exchange rate is gradually moving towards the monthly S3 at 1666, which might bring some bullish impulse. In case it fails to stop the downtrend, then the price is very likely to decline until the 200-day SMA at 1651, which in turn is expected to reverse the prevailing tendency. Additionally, the overall indicator outlook remains negative, therefore supporting the current downtrend.
Traders' sentiment
SWFX market participants maintain optimism about the XAU/USD exchange rate, as 67% of traders hold long positions and only 33% of traders hold short positions. The distribution of orders is very similar, since more than 77% of traders ordered to buy and only 23% ordered to sell gold.
© Dukascopy Bank SA