Gold Price Forecast to Fall even Further
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 3.87 as 79% of traders are long. Yesterday the ratio was 3.41; 77% of open positions were long. Long positions are 7.2% higher than yesterday and 8.5% above levels seen last week. Short positions are 5.7% lower than yesterday and 7.6% below levels seen last week. Open interest is 4.3% higher than yesterday and 11.3% above 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 further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.