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Should you buy euro and gold this week?


Last week, the US Senate approved a new $ 1.9 trillion aid package. President Biden’s American rescue plan includes an estimated $ 400 billion to be spent on the COVID-19 epidemic; about 1 trillion. dollars – to provide assistance to the population; the rest is to stimulate the economy. Now there is little left to do: a new bill must be approved in Congress and then signed by the American president.

The eurodollar and gold have already reacted to this news with growth, which is likely to continue in the long term, as the infusion of new funds into the economy and “helicopter money” lead to an increase in inflation and a depreciation of the national currency.

What to do, where to run?

Starting today, I have already started buying the Eurodollar, because in addition to fundamental factors indicating a decline in the dollar, a reversal formation appeared on the hourly chart.

The optimal entry point is located just above the “round level” 1.2000. I opened a long at the current price and placed a pending position at 1.2005.

I am also planning to buy gold.

The key factor for opening a trade is the breakout and subsequent successful retest of the 1818 level.

After the Americans get their hands on the next payments, some of them will start pouring this money into the cryptocurrency market. Therefore, it is quite possible that another upward wave awaits us ahead, which may become the very culmination of purchases.

The main task is not to miss the exponential growth of some altcoins and at the same time not get stuck in purchases at historical highs.

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PS. This article does not call for any action and does not constitute investment advice in the financial markets.

DFMFOREX

An interactive magazine for Forex traders. Here you will find the latest relevant news, examples of successful transactions and unsuccessful investments. Our journal contains a daily report of the trade of our specialists on the Forex exchange.

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