Gold/EUR sees little action after Eurozone CPI figure

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices in the EUR were little disturbed after the preliminary Eurozone CPI figure showed the currency bloc exited deflation in October.

    Stuck in a narrow range

    Prices have been stuck in a narrow range of EUR 1042-1046/Oz since the early Asian session today. The CPI printed at 0.0%, but had no effect on the EUR/USD pair, which trades 1.10 handle. Meanwhile, gold prices in the USD terms are dead flat, after suffering sharp losses in the previous two sessions.

    Consequently, the gold/EUR finds itself stuck in a narrow range. The sharp sell-off gold/USD and an uptick in the EUR/USD pair on Thursday made sure the metal in EUR terms fell below 200-DMA as well as hourly 200-MA.

    Gold/EUR Technical Levels

    The immediate resistance is seen at 1048.26 (hourly 200-MA), above which gains could be extended to 1054.41 (200-DMA). A break above would expose 1061.25 (Oct 26 high). On the other side, support is seen at 1042.78 (Oct 15 high), under which the prices could drop to 1035.05 (Aug 21 high).
    For more information, read our latest forex news.

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