Analysis of gold versus the dollar and the Euro ... Opportunities to build buying positions from safe levels

We can confirm that we have opportunities to build strong buying positions from very safe levels on gold versus the two most traded currencies in the global markets

Overview before Technical Analysis

Before the end of trading last Friday, the pair fell against the dollar to levels of 1992, while gold fell against the Euro to levels of 1016, the declines came simultaneously despite the different reasons, but it seems that the coincidence had a role this time

On the other hand, the British prime minister's remarks about the European Union's outbursts caused concern about the possibility of going out without an agreement, which prompted traders to quickly exit the buying of the British pound towards the Euro, which created temporary demand for the Euro during those few hours, Traders reacted before Friday's session

As for gold against the dollar, the performance of US indices in a positive after rapid declines during the past week, an incentive for investors to give up again holdings of gold in favor of buying indicators from areas they find suitable to buy and make quick gains

But traders did not noticed that the rudeness of the UK exit from the EU will do much damage to the Euro, it will hurt the pound, which seems ready to bear the brunt of the rough exit.

Therefore, looking at the EUR gold chart, we find that gold against the Euro managed to stay above 1015 levels and rose in morning trading to 1019 levels, thus enhancing the chances of reaching 1039 and 1045 respectively, heading towards the larger target at 1080

Gold against the Dollar has maintained its highest support level of 1180 and despite the rapid decline, but easily reached 1196 levels in morning trading today

We should be aware that there is a state of concern about the recurrence of the market crash scenario in 2008 and that traders now do not prefer to keep paper assets (stocks and indices) much and prefer to enter into rapid operations for fear of repetition or saturation of markets and create an explosive bubble

Technically, gold remains the key support for the USD 1180, which makes it preferable to enter positions from 1195 and 1188 with stop loss at 1160, take 1212 for short and 1235 for medium, while trading is awaiting 1350 as a first step before the final target At 1450 next year