Correlation between Euro and gold | 18 أغسطس 2020

EURUSD trading plan:

Rally at the gold market will positively affect on the Euro value, as far as both assets are correlating between each other historically. The gold and Euro are two assets that traders consider as alternatives to American dollar. The day before, investors completely have ignored the factor of withdrawal of dollar liquidity by the US Treasury. The Treasury took $62.48 billion from the financial system through the placement of bonds, but the dollar hasn't able to strengthen on this event. Investors are buying back any drawdowns and the euro is consolidating around 1.1900. Such dynamics indicate that new highs of the year await us in the very near future. Today the Federal Reserve will buy back bonds worth $8.8 billion, which may encourage traders to build up longs.

Trading recommendation: Buy 1.1895 and take profit 1.1940.