Correlation between the Euro and gold | 27 يناير 2020

EURUSD trading plan:

We are expecting an uptrend to develop. A bullish rally in the gold market will have a positive impact on the value of the European currency. The precious metal hit two-week highs, creeping toward the $1575 level targeted by traders on worldwide fears over the economic fallout to the China-originated coronavirus. Likened to the Chinese-originated SARS health epidemic that caused major market disruptions in 2003, the coronavirus has killed 26 people so far, also in China. It has prompted the Chinese authorities to introduce travel restrictions across 10 cities, affecting up to 40 million people according to some reports, in the middle of the country’s most important holiday season, the Lunar New Year.

Trading recommendation: Buy 1.10150 and take profit 1.1054.