Correlation between gold and euro | 27 Julio 2020

EURUSD trading plan:

A bullish rally in the gold market signals an uptrend in the euro. The correlation between the euro and gold is a classic correlation in intermarket analysis. We are expecting gold to rise to the level of 1915, which will have a positive effect on the euro value. For the year, gold is up nearly 24%.The rally comes on the back of low interest rates and trillions of dollars of Covid-19 stimulus passed by governments and global central banks that have debased the dollar and other conventional currencies and heightened inflation fears — a situation which traders typically hedge by buying gold.

Trading recommendation: Buy 1.1643 and take profit 1.1690.