GA is approaching some key levels really fast with the big bullish run last week this level is 1.88414 and this has not been reached since June 2016 nearly 3 years ago, current price is only 60 pips off this level.
Now there are correlating pairs that we look out for when trading and most of you might not even know that when these pairings move in 1 direction others also move... So we are going to let you into a trading secret ;p
Ok so as GBP gets stronger the UK100 ( British stock market ) gets weaker ( and vice versa ) , This is to do with foreign investors not wanting to import things from the UK into there own country because when GBP has strength these investors have to pay more for the goods and loose out on profits.
UK100 is nearly at a support level so we can see a bounce higher, this would weaken GBP.
Also when GOLD prices are up this pushes the price of AUD up as Australia is the 3rd biggest producer of gold in the world, The more gold it produces the higher the AUD price will go as it exports most its gold therefore investors pay Australia in AUD.
Gold is quickly approaching a key resistance level.. but with loads off bullish power so we are expecting this level to break and gold make a push higher.
So overall Gold strength would lead to AUD strength and UK 100 strength would lead to GBP weakness... So the only way we see for GA is down.
I hope you took all that info in as there is a lot to digest, but I also hope you took something away from this post and learned some key lessons that you will implement in your future trading.
Now there are correlating pairs that we look out for when trading and most of you might not even know that when these pairings move in 1 direction others also move... So we are going to let you into a trading secret ;p
Ok so as GBP gets stronger the UK100 ( British stock market ) gets weaker ( and vice versa ) , This is to do with foreign investors not wanting to import things from the UK into there own country because when GBP has strength these investors have to pay more for the goods and loose out on profits.
UK100 is nearly at a support level so we can see a bounce higher, this would weaken GBP.
Also when GOLD prices are up this pushes the price of AUD up as Australia is the 3rd biggest producer of gold in the world, The more gold it produces the higher the AUD price will go as it exports most its gold therefore investors pay Australia in AUD.
Gold is quickly approaching a key resistance level.. but with loads off bullish power so we are expecting this level to break and gold make a push higher.
So overall Gold strength would lead to AUD strength and UK 100 strength would lead to GBP weakness... So the only way we see for GA is down.
I hope you took all that info in as there is a lot to digest, but I also hope you took something away from this post and learned some key lessons that you will implement in your future trading.