Overall market volatility remains noticeable low today as traders await the ECB and BoE rate decisions in the coming days. Still, broad uncertainty regarding geopolitical risks in MENA as well as the debt problems in Europe support the yellow metal in range to all-time highs.
John Kicklighter of DailyFX suggests: “A preoccupation with rates (seen in FX) does not direct capital to the metal. General risk appetite can revive the speculative interests in gold; but we greater conviction than what we currently have. And risk aversion at this point would actually hurt.”
Euro recovery from 1.4020 low last week, extended on Monday's Asian session to 1.4269 high, to pull down on European morning, with risk appetite waning, and test support at 1.4200 area which so far remains unbroken.
On the downside, below 1.4190/00 (day lows), the Euro might find support at 1.4150 (Mar 29/30 highs) and 1.4060 (Apr 1 low). Resistance levels remain at 1.4240/45 (intra-day resistance), and above here, 1.4280 (Nov 4,2010 high) and 1.4415 (Jan 20 2010 high).
Mid-term frames show the Euro bullish targeting 1.4285, according to Stoyan Mihaylov, technical analyst at Deltastock.com: "Friday's test of 1.4050 support failed and a sharp reversal followed, initiating a rise all the way up to 1.4268. The bias on the mid-frame is bullish for a tight test of 1.4283 high, but the intraday outlook is bearish for 1.4179 support."