© Dukascopy Bank SA
Yesterday's bearish reaction failed to continue today, as today the XAU/USD exchange rate experienced a slight bullish correction, and at the particular moment the price is facing the 20-day SMA at 1714, which might reverse the uptrend. In case it is breached, the exchange rate is very likely to advance until the 55-day SMA at 1721, which in turn will probably stop the prevailing tendency. Additionally, the overall indicator outlook shows a strong sell signal, therefore supporting the potential tendency change in the nearest future.
Traders' sentiment
SWFX market participants expect that gold will gain value against the U.S. Dollar, as 66% of traders hold long positions and only 34% of traders hold short positions. The distribution of orders shows even stronger bullish trend expectations, since 78% of traders ordered to buy and only 22% ordered to sell gold.
© Dukascopy Bank SA