Correlation between euro and oil | 21 August 2019

21 August 2019, EUR/USD

EURUSD trading plan:

Investors are expected lower interest rates from the Federal Reserve, which will have a negative impact on the value of the dollar. Futures are fully priced for a quarter-point cut in rates next month, and over 1% of easing by the end of next year. This is will be the most radical measures in the last twelve years! The bullish rally in the oil market will have a positive impact on the value of the euro. The API, which often serves as an early indication of weekly petroleum levels, reported a 3.5 million-barrel drawdown last week. Traders expected a decrease of 1.9 million barrels. BRENT will test the 60.50 level today.

Trading recommendation: Buy 1.1079 and take profit 1.1114.

David Johnson
Analyst of «FreshForex» company
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