Inverse correlation of the dollar and oil | 16 فبراير 2021

EURUSD trading plan:

A bullish rally in the oil market will have a negative impact on the value of the U.S. currency, since assets are inversely correlated. The tensions in the Middle East drove oil to a 13-month high. Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group. The last time WTI Crude traded above $60 was in early January 2020, before the pandemic started worrying traders and fund managers. The combined net long position in Brent and WTI – the difference between bullish and bearish bets – rose to a 28-month high at 727,500 lots.

Investment idea: Buy 1.2124 and take profit 1.2172.