XAUUSD–Retail forex traders continue buying aggressively into Gold weakness versus the US Dollar, (ticker: USDOLLAR) and such one-sided sentiment warns of a potential breakdown.
Trade Implications – XAUUSD: Gold prices have traded in a progressively narrowing range, and a hold of key lows suggests Gold price recovery is likely. Yet that’s a big “if”, and we don’t feel comfortable joining the retail trading crowd in getting long at these levels. A break below key lows could prove significant.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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