© Dukascopy Bank SA
Even though the pattern on the chart of XAU/USD has not yet been completely formed, there are good reasons to believe the commodity will continue depreciating along the hypothetical boundaries of the channel down in the short run.
One of them is that the long-term simple moving average has been breached, which implies that the outlook has changed from positive an negative. The hourly indicators support this idea, although 4H and daily signals are mixed. Meanwhile, the sentiment of SWFX marketplace participants is moderately bullish, 57% of them are holding long positions and 43% are holding short ones.
© Dukascopy Bank SA