© Dukascopy Bank SA
The interim bullish tendency, which started a week ago, failed to continue, and today the XAU/USD exchange rate experienced a small bearish reaction. As for now, the price is heading towards the weekly PP at 1721, which might slow down the downtrend. If it fails to stop the prevailing decline, then the price might reach the weekly S1 at 1700, which in turn is expected to reverse the direction of the present movement downwards. Nevertheless, RSI indicator shows a sell signal, although the overall indicator outlook is still neutral.
Traders' sentiment
Despite the prevailing downtrend, traders at SWFX market maintain optimism about the XAU/USD exchange rate, as 73% of traders hold long positions and only 27% of traders hold short positions. The situation with orders shows even higher bullish tendency expectations, since 83% of traders ordered to buy and only 17% ordered to sell gold.
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