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- Wayne Cole and Hideyuki Sano (based on Reuters)
Pair's Outlook
A dip below the senior downtrend came as a surprise on Wednesday, as well as a confirmation of the month-long channel relevance. XAU/USD is currently attempting to dive underneath the bottom Bollinger Band at 1,138.73 and will face more risk at 1,135.96, the weekly S2. We would expect a retracement from the broken trend-line, meaning that the Bullion could reverse until the end of the day, but might as well manage to extend a dive if the correction comes sooner. Ultimately we would expect the pair to target the bottom boundary of the channel at 1,115.66.
Traders' Sentiment
Traders reminded optimistic on the bullion showing a 62% long position proportion, same as the two previous sessions, while long pending orders added 4% and resulted in a 67% reading.
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