Correlation between the European currency and oil | 06 Abril 2022

EURUSD trading plan:

Oil prices eased in volatile trade on Tuesday, pressured by a rising U.S. dollar and growing worries that new coronavirus cases could slow demand. Demand worries mounted after authorities in top oil importer China extended a lockdown in Shanghai to cover all of the financial center's 26 million people. To calm oil prices, U.S.-allied countries agreed last week to a coordinated oil release from strategic reserves for the second time in a month. The U.S. plan to release 180 million barrels of oil from its Strategic Petroleum Reserve has narrowed the spread between current and later-dated crude futures. This is a negative signal for oil and the European currency, since assets correlate with each other.

Investment idea: sell 1.0915 and take profit 1.0845.