Correlation between euro and gold | 17 April 2020

EURUSD trading plan:

Negative macroeconomic statistics from China will have a negative impact on the value of the European currency. China's economy shrank for the first time in almost three decades of records in the first quarter, as gross domestic product fell 6.8% in January-March year-on-year. The contraction is also the first in the world's second-largest economy since at least 1992 when official quarterly GDP records started as the coronavirus COVID-19 paralysed production and spending. A bearish rally in the gold market will have an additional negative impact on the value of the European currency, since the euro and the precious metal correlate with each other.

Trading recommendation: Sell 1.0862 and take profit 1.0820.