One of the problems as a trader and as a new trader is
to discover how the market works. In previous posts are illustrated some of the
common chart patterns and some of the common indicators.
In this post is the mind on the currency pairs. The
idea is to illustrate the correlation between the currency pairs. The posts are
only illustrative and only the correlation between the currencies will be illustrated.
The idea is to get started as a trader or move forward
in the thought as a trader. Please leave a comment about correlation between
currency pairs if you want to share some of them.
Social investment
network
Just before I write about the currency pairs I will place
a link to the social trading platform called eToro Social Investment Network;
it is a platform where traders socialize about trading CFD.
EUR/USD
and USD/CHF
The EUR/USD and the USD/CHF are often a mirror; the
currency pairs move in the opposite direction. Is the EUR/USD bullish is the USD/CHF
bearish and vice versa.
It is a rule which means that they can move in the
same direction as well.
EUR/USD
and EUR/GPB
The EUR/USD and EUR/GBP move most of the trading time
in the same direction but could also move in reverse direction.
USD/CHF
and USD/JPY
USD/CHF and USD/JYP are also currency pairs that often
move in the same direction most of the trading time.
It is a rule which means that they can move in the opposite direction as well.
An example:
How to use the information about the correlation between the currency pairs?
Watch the EUR/USD chart pattern; is the pattern
bearish or bullish? Is the pattern bearish? Watch the USD/CHF chart or the
USD/JPY chart for an entry in the market.
Please
note
This post has illustrated some common correlation
between currency pairs and is only inspiration to get started as a trader or move
forward in the thought as a trader.
The correlation between the currency pairs can be
stronger or weaker over time.
