Monday, September 3, 2012

Relationship of Gold and $/ The findings for AUD/USD


Sept 4 Update. A reversal Pattern appearing in AUD/USD



I believe IF this price holds. it will consolidate around 1.0217 level.
What worries me is the 2 time frame 50/200 day ema which suggest that giving this pair a higher boost will take time.
 Majority is still in favor of short but knowing the market, giving fundamental issues and the rise of GOLD can make this pair stronger as people may sell dollars due to GOLD appreciation.

Interesting I was able to do an overlay Technical Analysis of these 2 .

Exhibit 1.1 Dollar Index and Gold

Technically, We are just looking for a breakdown of USD lower to confirm the appreciation of Gold.
If this will happen. I believe the EUR/USD Pair will be affected and will appreciate higher  for short term.
I believe higher volatility will also increase. People are currently looking for "clear" direction of the movement.



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