© Dukascopy Bank SA
The bullish correction, which occurred yesterday, has successfully managed to continue, as today the XAU/USD exchange rate experienced another bullish movement, and at the particular moment the price is gradually approaching the monthly PP at 1713, which might bring some bearish momentum, however, if it is breached, then the exchange rate is likely to reach the 55-day SMA at 1726, which in turn is expected to stop the current movement upwards. Additionally, the overall indicator outlook is negative, therefore supporting the potential tendency change in the upcoming days.
Traders' sentiment
SWFX market participants are optimistic about the XAU/USD exchange rate, since 70% of traders hold long positions and only 30% of traders hold short positions. The distribution of orders as well shows bullish tendency expectations, as 76% of traders ordered to buy and 24% ordered to sell gold.
© Dukascopy Bank SA