Gold Prices Remain in Downtrend until this Changes
Why and how do we use the SSI in trading? View our video and download the free trading guide here
XAUUSD - The ratio of long to short positions in the XAUUSD stands at 2.56 as 72% of traders are long. Yesterday the ratio was 2.90; 74% of open positions were long. Long positions are 1.6% lower than yesterday and 14.3% below levels seen last week. Short positions are 11.7% higher than yesterday and 40.5% above levels seen last week. Open interest is 1.8% higher than yesterday and 3.0% below its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the XAUUSD may continue lower. The trading crowd has grown less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.