EUR/USD approaches monthly high with gold price at similar place
EUR/USD approaches the monthly high (1.0930) as it continues to bounce back from the 50-Day SMA (1.0731), with the price of gold at a similar place as it holds above last week’s low ($1934).
The positive relationship between EUR/USD and the price of gold looks poised to persist as the correlation coefficient current stands at +0.84, with a break/close above the 1.0870 (23.6% Fibonacci extension) to 1.0940 (50% Fibonacci retracement) region raising the scope for a test of the February high (1.1033).
EUR/USD Rate Outlook
A move above the February high (1.1033) may push EUR/USD towards 1.1090 (38.2% Fibonacci extension), with the next area of interest coming in around 1.1090 (38.2% Fibonacci extension), which sits just above the April 2022 high (1.1076).
At the same time, failure to clear the monthly high (1.0930) may push EUR/USD back towards the 50-Day SMA (1.0731), with a move below the moving average opening up the 1.0610 (38.2% Fibonacci retracement).
--- Written by David Song, Strategist
Follow me on Twitter at DavidJSong
The positive relationship between EUR/USD and the price of gold looks poised to persist as the correlation coefficient current stands at +0.84, with a break/close above the 1.0870 (23.6% Fibonacci extension) to 1.0940 (50% Fibonacci retracement) region raising the scope for a test of the February high (1.1033).
EUR/USD Rate Outlook
A move above the February high (1.1033) may push EUR/USD towards 1.1090 (38.2% Fibonacci extension), with the next area of interest coming in around 1.1090 (38.2% Fibonacci extension), which sits just above the April 2022 high (1.1076).
At the same time, failure to clear the monthly high (1.0930) may push EUR/USD back towards the 50-Day SMA (1.0731), with a move below the moving average opening up the 1.0610 (38.2% Fibonacci retracement).
--- Written by David Song, Strategist
Follow me on Twitter at DavidJSong
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