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Forex Currencies and Gold shares important correlations as follows: Gold and USD During times of Economic Unrest, investors shows lack of interest in Dollar(USD). Hence, when gold goes up, USD falls. Gold and AUD/USD Australia is the third largest gold producer in the world, selling approx. $5Billion/year. So AUD/USD raises when gold goes up. Gold and NZD/USD New Zealand is also one of the biggest gold producer in the world. With gain in gold, NZD/USD also goes up. Gold and USD/CHF CHF raises when gold goes up as 25% of Switzerland's reserve are backed by gold and pair moves down. Gold and USD/CAD CAD raises when gold goes up as Canada is 5th largest producer of gold. Hence, when gold raises up, USDCAD goes down Gold and EUR/USD Both Gold and Euro are ANTI_DOLLARS. If price of gold goes up then EUR/USD may go up as well. Oil and USD/CAD CAD raises when Oil goes up as Canada is one of the top Oil Producer that exports 2 Million Barrel/Day . USDCAD goes down w...

As the prefix “macro” in the name suggests, macroeconomics deals with the bigger picture. It is not only one specific economy that traders consider, but the implications in the overall global picture.  Forex market is primarily driven by overarching macroeconomic factors. These factors influence a trader's decisions and ultimately determine the value of a currency at any given point in time. GDP- Gross Domestic Product This is the measurement for goods and services that were finished over a period of time. GDP may be the most obvious economic report, as it is the baseline of a country's economic performance and strength.  The GDP is broken down into 4 categories: Business Spending Government Spending Private Consumption Total Net Exports Inflation Inflation is also a very important indicator, as it sends a signal of increasing price levels and falling purchasing power.  This is the measure of increases or decreases in pricing levels over a ...

Economic diversity shows a greater impact on underlying currencies than absolute export numbers. When a country’s principal export is oil or a commodity, its  currency exchange rate  tends to track the global price of that export. When the price rises, so do the exchange rate. The rising global price tends to attract inward investment and resources to the extractive industry, while other export industries struggle due to the high exchange rate – a phenomenon known as “Dutch disease” in which the economy becomes increasingly dependent on its extractive industries. When the prices of  oil and commodities  fall, the currency exchange rates of exporting countries fall in tandem. If the dollar weakens, crude oil prices should rise since oil is priced in dollars. If the dollar is cheaper, purchasers of crude can convert their local currencies into the dollar-denominated crude at a cheaper exchange rate, thus buying crude oil at a cheaper level based solely on the exch...

Crude Oil: Oil prices were stable supported by hopes that talks in Beijing between U.S. and Chinese officials might defuse trade disputes between the world's biggest economies OPEC-led supply cuts also tightened markets. There is also concern that a worldwide economic slowdown will dent fuel consumption. Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia. Brent crude futures were at $57.42/barrel rose 0.2% from their last close. WTI crude oil futures were at $48.56/barrel rose 0.1% Gold: Gold prices slid on Tuesday in Asia, as the U.S. dollar rebounded after falling for four straight sessions amid expectations that the U.S. Federal Reserve may shift its position and slow down future increases in interest rates in 2019. Gold Furures for February delivery declined 0.5% to 1,283.50  Price...

What is Currency Correlation? Currency correlation depicts an extent to which two currency pairs have moved in same, opposite, or totally random directions over a period of time. Thought Process: Why a certain currency pair rises, another currency pair falls? Why same currency pair falls, another currency pair seems to copy it and falls also? This is because of correlations between currencies. Correlation is the numerical measure of the relationship between two variables. The range of the correlation coefficient is between -1 and +1 . Positive Correlations: A correlation of +1 denotes that two currency pairs will flow in the same direction. For Example: Correlation between EUR/USD and GBP/USD is an epitome as if EUR/USD rises then GBP/USD is moving the same direction. Negative Correlations: A correlation of -1 indicates that two currency pairs will move in the contradictory direction 100% of the time. For Example: Correlation between EUR/USD and USD/CHF is an epitome of n...

EUR/USD:  EUR/USD is poised to close nearly 5% lower year-to-date with the pair trading just 1.5% off the 2018 lows. For months now, we’ve been tracking a key support pivot in Euro and the focus remains on a breakout of the consolidation range which has governed price since October.   Price holding critical support confluence at 1.13 GBP/USD: Headlines:Sterling moves higher after UK retail sales rise above expectations Sterling is facing resistance and  rallied a bit during the week, reaching towards the 1.27 level. The British pound has broken through a significant support a couple of candlesticks ago, and it now looks as if it is offering resistance yet again.  GBP will continue to struggle, and the breakdown from a couple of candlesticks ago suggests that we are trying to make the next leg lower. USD/JPY: Traders have remained net-long since Dec 18 when  USDJPY  traded near 112.517; price has moved 1.9% lower since the...

Currency Pair Analysis: Perform a world class analysis to determine which currency pairs have the greatest profit potential. Trade Management: Trade management techniques to take the most of each trade when the market moves on their favor. Study the Market: Entry system adapts to the current market conditions, follow the market instead of guessing. Risk Management: Risk management techniques to set stop loss and take profit orders at optimal levels. Accept risk and feel comfortable with their trading, they know it’s the only way to get consistent results. Money management techniques to allow the geometric growth of their account and avoid the risk of ruin. Long-term analysis:  Methodology to determine which currency pairs have the greatest profit potential. Short-term analysis:  Entry systems: breakout, retracement and continuation price action entries. Capital management:  Determine the formula that you will use to decide how much capital to risk on each t...