T2W Bot
Staff member
In this article I will focus on the correlations of currency pairs and how they can help us trade. Occasionally, a trader may notice that a particular currency pair may lead another currency pair – that is, have turning points that happen a candlestick or two earlier. While it is rather rare for two different currency pairs to do EVERYTHING in the same way for long – be it trending or channelling – occasionally, we can be alerted to a potential turn in one pair when its dance partner turns first.
The first currency pair and its partner that we will examine is the EURUSD and the USDCHF. Before we examine the charts, always remember that with the USD on different sides in these two pairs, we have a reasonable Economics 101 belief that the charts will be heading in opposite directions at the same time. If the EURUSD is trending up, the US dollar is getting weaker versus the Euro, while in the USDCHF, a DOWNWARD trending chart is indicating a weakening US dollar versus the Swiss Franc...
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