© Dukascopy Bank SA
Today the XAU/USD exchange rate experienced another bearish reaction, therefore supporting the interim bearish trend. As for now the price is about to test the monthly S1 at 1704, which might stop the prevailing downtrend. In case it is broken, then the exchange rate is very likely to reach the lower Bollinger band at 1696, which is expected to reverse the prevailing bearish tendency. Moreover, RSI indicator still remains neutral, although the overall indicator outlook is negative, therefore supporting the current movement downwards.
Traders' sentiment
SWFX market participants maintain optimism regarding the XAU/USD exchange rate, since 70% of traders hold long and 30% of traders hold short positions. The distribution of orders aw well spots some uptrend expectations, as 74% of traders ordered to buy and 26% ordered to sell gold.
© Dukascopy Bank SA