Forex Fundamental Analysis – Correlation of Euro and oil

EURUSD – Up

Correlation of Euro and oil

EURUSD trading plan:

Traders buy the Euro before the European Central Bank meeting. Mario Draghi will hold his last meeting as head of the Central Bank. The European Central Bank has not been able to solve the problem of low inflation in the region. This is a negative signal for the Euro. The good news for investors is a bullish rally in the oil market as the Euro and BRENT correlate. U.S. Energy Information Administration reported a 1.7-million-barrel crude inventory drop for the week ended Oct.18, versus analysts’ expectations for a build of 2.2 million barrels. Gasoline inventories fell by 3.1 million barrels, compared with an expected drop of 2.27 million barrels. Distillate stockpiles dropped by about 2.72 million barrels, versus forecasts for a decline of about 2.8 million barrels.

Trading recommendation: Buy 1.1120 and take profit 1.1145.

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