Gold managed to emerge as one of the winners from the recent market turmoil. On the other side of the equation, the euro suffered from the removal of the Swiss bid.
The team at Bank of America Merrill Lynch analyzes the charts and sets targets:
Here is their view, courtesy of eFXnews:
Gold in Euros ( XAU/EUR) continues to trend higher towards its measured target of 1100, notes Bank of America Merrill Lynch.
“While this could be a near term sticking point, on a longer term basis XAU/EUR has significant topside,” BofA adds.
“Indeed, the Gold (in USD) break above 1255/1253 resistance (Oct-21 high and the 200d); clears the way for 1345 and beyond,” BofA projects.
Meawhile, with the break of 1.2000 in EUR/CHF, BofA reiterates its bearish EUR view.
“EUR/USD could see a pause into 1.1555/1.1500 support, but bounces should be sold. Gains should not exceed 1.1767/1.1841. We continue to target 1.1212 (61.8% of the 2000/2008 advance) ahead of 1.0588/1.0283,” BofA advises
Meanwhile BofA remains short EUR/GBP for 0.7582, ahead of 0.7539 and potentially below.
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