FX.co ★ Analysis of Gold for January 27,.2021 - Watch for selling opportunities on the rallies with the main target at $1.830-$1.810

ECB is monitoring strengthening in the euro

• Euro strength would take prominence for ECB if it threatens inflation outlook
• ECB taking a holistic view on financing conditions
• ECB hasn't reached lower bound, still room for rate cuts
• Too early to talk about exit from low rates
• There should be room for optimism after the summer

This is knocking the euro a little lower on the day, with EUR/USD falling to 1.2120 currently - creeping below its 200-hour moving average. There is also a slight dollar bid across the board as we see commodity currencies ease to session lows on the day as well.

Further Development

Analyzing the current trading chart of Gold, I found that sellers are in control and as I predicted the downside cycle is active with potential for the test of the support levels at $1,830 and $1,810.

Key Levels:

Resistance: $1,850

Support levels: $1,830 and $1,810.