Technical Analysis XAUEUR

Chart Analysis

On the daily timeframe, XAUEUR: D1 is in a growing trend. At the same time, its increase slowed down. A number of indicators of technical analysis formed signals for a downward correction. We do not exclude a bearish movement if XAUEUR falls below the uptrend support line and its last minimum: 1545. This level can be used as an entry point. We can set a stop loss above the last upper fractal, the Parabolic signal and the historical maximum: 1615. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of the trend. If the price meets the stop level (1615) without activating the order (1545), it is recommended to delete the order: some internal changes in the market have not been taken into consideration.

Fundamental Analysis

In this review we will consider the Gold vs Euro trading instrument from the «Precious metals» group. Will XAUEUR quotes decrease ?

Such a movement occurs when gold becomes cheaper and the single European currency strengthens. Gold rose markedly in price as the Covid-19 pandemic developed. Investors regarded it as a protective asset. A number of countries are now beginning to mitigate quarantine requirements, which may contribute to the correction of precious metal prices. Particularly in the US, a number of companies and organizations in South Carolina, Georgia, Oklahoma, Alaska and some others resumed their work. In Europe, quarantine mitigation was announced by Czech Republic, Greece, Croatia, Switzerland. In turn, the euro may receive support in case of positive statements at the ECB regular meeting on April 30, as well as if data on GDP for the 1st quarter, unemployment and inflation in the Eurozone are positive. European statistics will also come out on April 30. GDP is expected to drop by 3.1% in annual terms, inflation in April + 0.1% and unemployment in March 7.7%.