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The downtrend, which started a couple of days ago, successfully managed to continue, as today the XAU/USD exchange rate experienced another movement downwards, which has already managed to overcome the 20-day SMA at 1771, and at the particular moment the price is about to test the weekly S1 at 1762, which might change the direction of the current movement. In case it is broken, then the exchange rate is likely to reach the lower Bollinger band at 1748, which will probably stop the prevailing downtrend. Moreover, the overall indicator outlook is positive, therefore a trend reversal might occur in the nearest future.
Traders' sentiment
SWFX market participants maintain optimism about the XAU/USD exchange rate, as 65% of traders hold long positions and 35% of traders hold short positions. The orders are distributed in a rather similar manner, since 77% of traders ordered to buy and only 23% ordered to sell gold.
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