Gold/EUR rises on Draghi, but rejected at key fib level

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold/EUR or Gold prices in the EUR terms rose to EUR 1016.49/Oz (23.6% of Oct 28 high-Nov 15 low) after Draghi strong hinted at more easing in December.

    However, the rebound in the EUR/USD pair to near 1.07 levels ensured the pair failed to sustain above the said Fib level and 50-DMA.

    Weekly 50-MA – A strong support

    Prices rebounded from the weekly 50-MA (EUR 1000.26) for the second consecutive week, while the upside was capped at the 10-WMA at EUR 1022.58 levels. The metal appears more likely to end the week lower as gold prices in USD terms appear stuck below hourly 200-MA around USD 1184, while the EUR/USD pair is struggling around 1.07 levels.

    Gold/EUR Technical Levels

    The immediate support is seen at 1000.26 (weekly 50-MA), under which the losses could be extended to 989.86 (Sep last week low). On the higher side, 1022.58 (10-WMA) could offer resistance, above which prices could test 1034.93 (Aug high).
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