The single European currency appreciated about 58 basis points against the Japanese Yen on Friday. The currency pair breached the 50.00% Fibonacci retracement level at 120.88 during the morning hours of Monday’s session.
Currently, the exchange rate is testing the 61.80% Fibonacci retracement level at 121.02.
If the resistance level, formed by the 61.80% Fibo holds, a decline towards the 120.60 area could be expected today.
However, if the currency exchange rate passes the 61.80% level, a surge towards the 121.39 mark is likely to follow within the following trading session.
To conclude, the momentum of the gold price is strong. This is despite the fact that traders do know that the trade deal could be happening any day. However, investors do not feel fully comfortable to place their eggs in one basket-the equity markets and this is keeping the gold price higher.
