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Sep 07 - 05:55 AM

EUR/USD - Oil's Major Reversal May Do EUR/USD Traders A Favour

By Jeremy Boulton  —  Sep 07 - 03:50 AM
  • Oil drops $/5bbl from Aug 31 peak at $46.53 (today's low $41.51)

  • Aug 31 peak was the highest for recovery in prices from April low

  • Oil filled March gap then dropped. Failed just over 200-DMA

  • $50/bbl is a massive hurdle. $50.45 is 61.8% drop from 2020 high

  • There's a gap to fill on the downside May 29-Jun 1 $35.37-37.01

  • Lower oil is a risk-off signal. EUR is considered a safe asset

  • Eurozone imports oil, U.S. producers it. Drop logically supports EUR/USD

  • Traders broadly long EUR/USD and the rally has stalled nL1N2G403F

Brent crude oil Click here

Source:
Refinitiv IFR Research/Market Commentary

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