Gold euro technical analysis: Will the XAU/EUR quotes continue to rise?

Dmitry Lukashov IFC Markets

Gold euro technical analysis summary

Buy Stop: Above 1560.

Stop Loss: Below 1470.

Indicator	Signal
RSIN	eutral
MACD	Buy
MA(200)	Buy
Fractals	Neutral
Parabolic SAR	Buy
Bollinger Bands	Neutral

Gold euro chart analysis

On the daily timeframe, XAUEUR: D1 has already broken the triangle and downtrend resistance line upwards for the 2nd time, and has also exceeded the 200-day moving average line. A number of technical analysis indicators have generated signals for further growth. We do not rule out a bullish movement if XAUEUR: D1 rises above its last high and upper Bollinger band: 1560. This level can be used as an entry point. The initial risk limitation is possible below the 200-day moving average line, the Parabolic signal, the lower Bollinger line and 3 lower fractals: 1470. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1470) without activating the order (1560), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental analysis of precious metals – Gold euro

Precious metals may rise in price amid increasing risks of another wave of coronavirus. Will the XAUEUR quotes continue to rise?

According to the World Health Organization, in Europe the average number of infected with Covid-19 has increased in 7 days and reached 173 thousand. This is more than the July maximum, which was 161 thousand. An additional positive factor for gold may be the low yield of government bonds of developed countries, which is now noticeably lower inflation. For example, the yield on Germany 10-Year Bond is negative at -0.1%. At the same time, inflation in Germany in September amounted to 4.1% in annual terms.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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