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Saturday, March 19, 2016 3:03:30 PM
Yes, there's always a relationship somewhere. Commodities move inversely with the US dollar so, when you think about it, it adds up that the risk pairs like AU and EU are also inverse to the US dollar. Commodities range from oil and gold to orange juice and pork bellies.
The stock market historically moves inversely to the US dollar as well for the most part.
Here's a gold chart to go by in relation to AU. I found this chart today while browsing around on Daneric's blog site. He's one of my favorite EW guys.
It shows a falling wedge breakout, same as the AU weekly chart I posted. The breakout though has pretty much run the length of the wedge up to the previous Wave 2 peak so it's due to fall back and retest the wedge breakout area before it can move higher. This and the sharp move up on other commodities is what's been driving AU higher.
The stock market historically moves inversely to the US dollar as well for the most part.
Here's a gold chart to go by in relation to AU. I found this chart today while browsing around on Daneric's blog site. He's one of my favorite EW guys.
It shows a falling wedge breakout, same as the AU weekly chart I posted. The breakout though has pretty much run the length of the wedge up to the previous Wave 2 peak so it's due to fall back and retest the wedge breakout area before it can move higher. This and the sharp move up on other commodities is what's been driving AU higher.
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