Confirming the long term trend of a particular instrument with another correlating factor only increases the probability of a profitable trade.

We are attempting a predictive write up here, since there are similar patterns developing in EUR/USD and Spot Gold.

As of today, the overall situation seems to be favoring the Us Dollar, as the technicals are indicating some respite from its recent downfalls.
This may not necessarily be a reversal, but we can certainly expect a retracement of the US Dollar to the upside.

Let’s first have a look at the close relation between the movements of EUR/USD and Spot Gold.

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