Recommendation for Gold Euro: Sell
Sell Stop : Below 1565
Stop Loss : Above 1655
On the daily timeframe, XAUEUR: D1 is correcting downward from the historical high. It approached the downtrend support line. It must be broken down before opening a position. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if XAUEUR falls below the 200-day moving average, the last lower fractal and the lower Bollinger line: 1565. This level can be used as an entry point. We can place a stop loss above the last upper fractal, upper Bollinger line and Parabolic signal: 1655. 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 the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1565) without activating the order (1655), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
The development of Covid-19 vaccines may reduce global risks and the demand for gold. Will the XAUEUR quotations continue to decrease?