XAUEUR Gold Vs Funding Currency
After ECB LTRO in the latest MP Meeting, expectations of no rate hike in 2019 even in 2020 limits the EURO’s upwards momentum.
On the US side, although the FED softens its rhetoric, the stronger economic outlook compared to the European Region, the risks from Brexit and Italy, and the diverging central bank policies make the euro more attractive than the USD as a funding currency.
When we look at the gold side, global uncertainties, slowing economies and easing /expanding central bank policies will support Gold price in the near term.
The increase in total gold ETF positions over the past month is remarkable.
In light of these developments, instead of buying Gold against USD which has a higher real interest, we plan to buy XAUEUR.
This year Sterling and Gold would be our favourite instruments.
XAUEUR is trading in a horizontal range between 1130 ve 1159. A triangle pattern is being printed.
1159 remains as strong resistance.
We will buy XAUEUR on the breakout of 1159. Stop Loss 1145. My near term targets :
In the long term, 1200 and 1222 will be the targets of XAUEUR.
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money
XAUEUR: 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 securities. You should do your own thorough research before making any investment decisions. Chartreaderpro 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 Forex 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