EUR/USD and Gold
We have some exciting set ups in the works, there should be good longer term movement forming that could carry a trade well into the first of the year. There’s going to be some interesting action as we get into the weekend and during the week between Christmas and New Years, volume can be pretty low during that week. But with some slightly longer term trades it will be much easier to survive the “chop and slop” that will likely happen over the next few days.
Gold has moved down extensively over the last few weeks, naturally it is retracing some amount of that big move down. Have a look at the gold chart below:
If gold can continue this break out down after the 38% retracement the EUR/USD should follow not far behind, the set up on the EU is correlating nicely with gold.
Remember, the European Union is replete with surprise news announcements so this is where the longer term run will be a good way to side step all the surprise spikes, as this pair continues to hold onto the trend.
Watch Gold and the EUR/USD and follow the movement through the break out levels while correlating the break out direction and trend between the two pairs.