Correlation between the euro and gold | 21 Junio 2021

EURUSD trading plan:

Gold bulls suffered their worst week since the 2020 Covid outbreak as prices fell almost 6% this week on the Federal Reserve’s expedited timetable for rate hikes and stimulus tapering. The Fed’s maneuvers had been somewhat expected - yet generated fear beyond necessary and a mauling in gold that played to the advantage of bears in the yellow metal. The U.S. central bank is embarking on an overly hawkish rate hike and stimulus tapering proposal that could lift off as soon as possible, after a year of super-easy pandemic-friendly monetary policy. This is a negative signal for gold and the euro, as the assets are correlated with each other.

Investment idea: sell 1.1920 and take profit 1.1890.