Jun 30 2020 07:32
Positively Correlated Currency Pairs:
- EUR/USD and GBP/USD
- EUR/USD and AUD/CHF
- EUR/USD and NZD/USD
Pasangan Mata Uang yang Berkorelasi Negatif:
- EUR/USD and USD/CHF
- GBP/USD and USD/CHF
These are some of the currencies that have a strong correlation, but there are also some currencies with a weak correlation that you can use to successfully split your risk across several currencies. This is an example of a negative correlation, EUR/USD, and USD/CHF.
For trading the correlation system, you can use the correlation hedging strategy, hedging cross, or basket trading.
Jul 1 2020 11:36
What does this mean by a positive correlation? If the price of GBP/USD is going up then EUR/USD also goes up? Or vice versa?
Jul 3 2020 11:40
@Oscar Chapman Yes, right. EUR/USD and GBP/USD are correlated positively. If EUR/USD rises, GBP/USD will also tend to rise if there are no important fundamental factors affecting GBP. And vice versa, if EUR/USD goes down then GBP/USD will also tend to fall.
Jul 4 2020 11:45
What pairs are correlated and opposition to XAU/Gold?
Jul 5 2020 11:47
For now, the opposite direction of the XAU/USD movement is USD/JPY. If XAU/USD moves up then USD/JPY goes down, and vice versa. The one in the direction is XAG/USD (silver). If XAU/USD goes up then XAG/USD also goes up, and vice versa.
Jul 6 2020 11:49
Isn't XAU/USD going against US/CHF?
Jul 9 2020 11:53
@David Schoppe That's right, apart from USD/JPY, XAU/USD also has a negative correlation with USD/CHF and USD/CAD as well. But the negative correlation between XAU/USD and USD/JPY has higher accuracy compared to USD/CHF. For the negative correlation of the XAU/USD pair, many traders refer to USD/JPY.
Please observe the comparison of USD / CHF and USD / JPY movements against XAU / USD on the following H1 time frame:
