Trading Gold Short – EURCAD Short Opportunity

This morning, Gold opened higher with a gap to the upside, due to attacks on oil facilities in Saudi Arabia and we see this as an opportunity to sell again and let the market “fill the gap”.

Euro weakness continues against currencies like the USD, GBP and CAD.

One of the biggest fundamental problems with the EUR is the poor COVID vaccine distribution which will impede economic recovery compared to other economic regions.

If we look at EURUSD on the daily chart, for example, we see that we may have a long way to fall if other major economies do better than Europe.

Last week’s US Non-Farm Payroll report was better than expected and USD strength has driven EURUSD lower.

Also, this week we have a lot of economic news which will affect the EUR like Employment Change and GDP tomorrow, and an Interest Rate decision and press conference Thursday.

The Bank of Canada will also be announcing an Interest Rate decision Wednesday with Employment Change Friday.

The Canadian Dollar is stronger against all other currencies based on the increasing price of crude.

As we mentioned earlier, yesterday’s drone strike in Saudi Arabia had WTI and Brent Crude opening with a gap so let’s see if the market can fill this gap as well.