Trading Forex Pairs with Gold - Profiting with Forex (PFX)

Trading Forex Pairs with Gold

This is the second article in a series we will be doing at www.PFXglobal.com on forex trading and intermarket analysis. In this section we will expand on the relationship between commodity prices and the commodity currencies. One of the specific relationships that can be used to find trades and analyze risk is gold prices and the AUD. The pairing between these two markets is quite strong and can be very useful in the long term as well as the short term.

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In today's video we will look at setting up short term trading opportunties between gold and the AUD/USD. The setup looks for periods that the two markets temporarily "disagree" and then taking a trade in the direction of the current trend to try and capture the "correction." There have been a few good examples of this tradign opportunity recently and the pairing is giving a current trading signal for long AUD/USD.

In the next few sections we will be expanding our discussion about intermarket analysis beyond commodities and the short term outlook. There is plenty to learn and depending on your trading style there is something for everyone.

What do you think about intermarket analysis? We have talked previously about the influence that the VIX or equities has on the forex but what other relationships do you want to know about? Let us know in the forums.

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