2024-12-26 09:35

IndustryA Hidden Edge
Forex pairs don’t move in isolation; many are interconnected through market correlations. For example, EUR/USD and USD/CHF often move inversely due to their shared relationship with the USD. Similarly, AUD/USD and NZD/USD are positively correlated, as both are influenced by commodities and Asian markets. Understanding these correlations can help you avoid overexposure to a single currency and identify additional trading opportunities. Use tools like correlation matrices to analyze relationships between pairs before opening trades. Mastering correlations gives you a broader perspective on the market and helps you make more informed decisions.
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A Hidden Edge
| 2024-12-26 09:35
Forex pairs don’t move in isolation; many are interconnected through market correlations. For example, EUR/USD and USD/CHF often move inversely due to their shared relationship with the USD. Similarly, AUD/USD and NZD/USD are positively correlated, as both are influenced by commodities and Asian markets. Understanding these correlations can help you avoid overexposure to a single currency and identify additional trading opportunities. Use tools like correlation matrices to analyze relationships between pairs before opening trades. Mastering correlations gives you a broader perspective on the market and helps you make more informed decisions.
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