© Dukascopy Bank SA
Yesterday's bearish reaction did not manage to continue, and today the XAU/USD exchange rate experienced a major bullish advance. At the particular moment, the price confronts the weekly R1 at 1705, however, when it is breached, then the exchange rate might reach the upper Bollinger band at 1725. In case it fails to stop the rally, then next resistance at 1752 (weekly R3) is expected to bring some bearish impetus. Additionally, RSI indicator has entered the over-bought area and now shows a sell signal, therefore a trend reversal might be expected in the nearest future.
Traders' sentiment
SWFX market participants expect gold to gain value against the U.S. Dollar, as 71% of traders hold bullish positions and only 29% of traders hold bearish positions. The situation with orders shows even higher bullish tendency expectations, since 79% of traders ordered to buy and only 21% ordered to sell gold.