Correlation between the European currency and gold | 20 Enero 2022
20 Enero 2022, EUR/USD
EURUSD trading plan:
Gold rose more than 1% as a retreat in the dollar and geopolitical tensions surrounding Ukraine burnished safe-haven bullion's appeal, sparking a rally in precious metals. U.S. Secretary of State Antony Blinken said earlier in the day Russia could launch a new attack on Ukraine at very short notice but Washington would pursue diplomacy as long as it could. The yellow metal also benefited from its appeal as a hedge against inflation as oil prices rose to their highest since 2014, sparking concerns that price pressures could intensify. This is a positive signal for the European currency, as assets correlate with each other.
Investment idea: buy 1.1330 and take profit 1.1377.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
