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The significant bearish reaction, which occurred a couple of days ago, has failed to continue, and today the XAU/USD exchange rate experienced a slight bullish correction as the price rebounded from the lower Bollinger band at 1674. As for now, the price is gradually approaching the weekly PP at 1694, which might slow down the rally. In case it is breached, the the exchange rate is very likely to reach the 20-day SMA at 1716, which in turn is expected to bring some bearish momentum. Additionally, RSI indicator still shows a neutral signal, however, the overall indicator outlook is bearish, therefore supporting the potential trend reversal.
Traders' sentiment
SWFX market participants are optimistic regarding the XAU/USD exchange rate, as 72% of traders hold long positions and only 28% of traders hold short positions. The distribution of orders as well shows strong uptrend expectations, since 73% of traders ordered to buy and only 27% ordered to sell gold.
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