Correlation between euro and gold | 22 يونيو 2020

EURUSD trading plan:

A bullish rally in the gold market will have a positive impact on the value of the European currency, since both assets are correlated with each other. Gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates. Federal Reserve Chairman Jerome Powell said this week in his testimony to Congress that the economy appears to be at the beginning of a recovery phase, while also acknowledging that the central bank’s visions of improving growth in the second half of the year don’t assume a renewed series of shutdowns.

Trading recommendation: Buy 1.1190 and take profit 1.1240.