© Dukascopy Bank SA
– based on Bloomberg
Pair's Outlook
The yearly wedge proved its strength against the three-week channel XAU/USD had established on its way through the senior pattern. Hovering just above the 55-day SMA at 1332.13, the pair confirmed a three-month descending triangle, which has been building up some bearish potential to make a solid attempt at the bottom line of the senior channel at 1316.98. While the channel trend-line has accumulated strength over the last year, the triangle support (1307.56) is toughened by the 100-day SMA along with several affirmations during the last two years, making it a tough target to break.
Traders' Sentiment
Traders have increased their bearishness, as 60% of open positions are short on Friday, compared to 53% on Thursday. In the meantime, pending commands remain bullish, as 61% of set up orders are to buy.
© Dukascopy Bank SA