© Dukascopy Bank SA
The interim bearish tendency, which started a couple of days ago, has failed to continue, as today the XAU/USD exchange rate experienced a bullish correction. As for now, the exchange rate is about to test the weekly PP at 1728, which will probably bring some bearish momentum. In case it fails to stop the downtrend, then the price is very likely to reach the weekly R1 at 1743, which in turn might change the direction of the current movement upwards. Additionally, the overall indicator outlook is negative, therefore a soon trend reversal could be expected.
Traders' sentiment
Traders at SWFX market anticipate that gold will gain value against the U.S.Dollar, since almost 71% of traders hold long positions and only 29% of traders hold short positions. The distribution of orders is very similar, as 72% of traders ordered to buy and only 28% ordered to sell gold.
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