Darwin Horan-Free Ebook - The Savior Forex Strategy -Part 3

Darwin Horan-Free Ebook - The Savior Forex Strategy

The Australian dollar/U.S. dollar, New Zealand dollar/U.S. dollar, and

U.S. dollar/Canadian dollar are the three pairs you will most commonly call
"comm dolls." Let's use the U.S. dollar/Canadian dollar or "canada" as an
example. The "canada" has a relationship to the energies complex, meaning
crude oil, heating oil, natural gas. It moves, however, with a strong
correlation to crude oil. Why? Well, consider that the country of Canada is
one of the world's leading exporters of crude oil (from .eia.doe.gov/
pub/oil gas/petroleum/data publications/company level imports/current/
import.html).
You better bet the supply and demand of crude affects the Canadian
economy. But is that the end of the story for commodity currencies? No,
not even close. You see this pair has a correlation to the U.S. dollar as well.
Remember it's the U.S. dollar/Canadian dollar pair. We not only have to
consider the impact of crude oil on the Canadian dollar itself but also how
the U.S. dollar is moving against the Canadian dollar.

I am going to go into great depth later on about these relationships and
my Forex Market Pulse. For now, though, think about this: Does crude oil
affect the Canadian economy alone? I think we have seen what high crude
oil prices have done to the U.S. economy as well. So bottom line? All pairs
that have a relationship back to the U.S. dollar will have a certain amount
of impact from crude oil. And that means that all U.S. dollar pairs can be
considered comm dolls to a certain extent. Now that's not something you
will hear from most traders, but I'm here to tell you that's the way it is.

So, there's always a bull market somewhere in the forex. When you
consider all the different countries, commodities, and the relationship they
have with one another, it's easy to begin to understand that while some
currencies are being beaten down, others are rallying in com

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