- XAU/EUR looks to extend the recent rebound from two-week lows.
- Gold buyers remain hopeful while above the 21-DMA.
- RSI sits above the midline, supporting the recovery mode in gold.
XAU/EUR is looking to build onto the recovery from its two-week lows of $1,582 reached earlier this week.
The spot is currently flirting with the $1,600 threshold despite a minor pullback in the euro, as markets reassess the potential risks emerging out of the European covid curbs.
Looking at it technically, XAU/EUR stalled its four-day losing streak on Wednesday, having found strong support at the ascending 21-Daily Moving Average (DMA), now at $1,592.
A daily closing below the latter is needed to resume the correction from the 14-month top at $1,653.90.
The two-week lows will be retested below the 21-DMA support, opening floors for a drop towards $1,575, November 10 lows.
If the selling momentum accelerates, then the bears will target the upward-sloping 50-DMA at $1,550.
XAU/EUR daily chart
On the upside, Wednesday’s high at $1,612 will offer immediate resistance, above which the $1,650 psychological will draw buyers’ attention.
The 14-day Relative Strength Index (RSI) sits above the midline, suggesting that there is scope for the rebound to gain traction.
Acceptance above $1,650 could trigger a fresh upswing towards the $1,700 threshold.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.