Gold recovers from lows in EUR terms after Draghi testimony

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices in the EUR terms or XAU/EUR pair’s recovery gained momentum after Draghi, in his testimony, said the ECB is ready to do more if required.

    Supported by 5-DMA

    Prices found support around 5-DMA located at EUR 1079 levels. Draghi, in his introductory statement, said the bank is ready to its part (in propping up economy and inflation) and shall do more if required. Draghi also repeated that bank will reassess the need to do more in March.

    The dovish statements are not surprising. Nevertheless, it helped weaken EUR/USD slightly and aid the recovery in XAU/EUR pair. Gold in EUR terms currently trades around EUR 1085/Oz levels.

    Gold (EUR) Technical Levels

    The immediate support is seen at 1079 (5-DMA), under which the prices could drop to 1067.10 (Feb 9 low). On the other hand, a break above 1094 (hourly 50-MA) would open doors for a re-test of 1100 levels.
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