News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Australian Private Capital Expenditure -3.0% in Q3 vs -1.5% expected and from -6.4% in Q2 (revised worse from -5.9%), $AUDUSD little changed so far -BBG
  • RT @FxWestwater: New Zealand Dollar Forecast: $NZDUSD May Rise Over Thanksgiving Holiday Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/11/26/New-Zealand-Dollar-Forecast-NZDUSD-May-Rise-Over-Thanksgiving-Holiday.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/dJMDOV…
  • The S&P 500, Dow Jones and crude oil prices have recently made critical advances to the upside. Is retail positioning supporting the case for further upside momentum?https://t.co/rfA2TsBctB https://t.co/D6bYpLxrKk
  • Update on #Cryptocurrencies #BITCOIN -0.85% #BITCOINCASH -4.66% #ETHEREUM -2.27% #RIPPLE -1.24% #LITECOIN -2.87%
  • An improving economic backdrop is bolstering crude oil prices and in turn, the Canadian Dollar. Still, the risk-sensitive Australian Dollar continues to move higher. Get your market update from @FxWestwater here:https://t.co/NJ683bZKpe https://t.co/4XfW9FjwWk
  • Deeper losses in gold prices towards 1763.36 can’t be ruled out in the near-term. Get your $XAUUSD market update from @CVecchioFX here:https://t.co/tIoQ10Ox4g https://t.co/FXACtXI84s
  • The New Zealand Dollar is not a major I've been talking about frequently of late, but it is carving out one of the most impressively consistent trends among the standard FX crew. Impressive $NZDUSD weekly technicals and COT net spec positioning: https://t.co/PzxFCCiMm2
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.39% 🇨🇭CHF: 0.31% 🇬🇧GBP: 0.20% 🇦🇺AUD: 0.07% 🇯🇵JPY: -0.03% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MTHtFXyiUS
  • A weekly chart of crude oil looks favorable for bulls, but this four-week charge has some serious fundamental headwinds in the headlines. Reports that even OPEC is concerned about the commodity's outlook https://t.co/w7mioBXi8o
  • 🇳🇿 Balance of Trade (OCT) Actual: N$-1M Previous: N$-1017M https://www.dailyfx.com/economic-calendar#2020-11-25
Forex Strategy Video: Trading Opportunities in EURUSD, AUDUSD Relationship

Forex Strategy Video: Trading Opportunities in EURUSD, AUDUSD Relationship

2013-10-21 22:12:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• When pairs have strong correlations, it is often a sign of a common fundamental driver

• With EURUSD and AUDUSD, a common link to risk trends typically sees the two move in tandem

• Deviations from normally linked pairs can reflect a fundamental shift with potential trade implications

Sign up for John’s email distribution list, here.

There are many currencies, pairs and general market classes that carry strong correlations. Those relationships speak to underlying fundamental themes. Yet, just like a technical reading, these correlations can sometimes oscillate as catalysts and themes wax and wane in influence. Rather than work out the complex web of fundamental relationships between pairs, we can instead look at the technical relationship in price. And, when a historically strong link between two pairs deviates - and is likely to realign - we can identify trading opportunities. In today's Forex Strategy Video, we discuss a rudimentary way of viewing correlations.

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES