Traders all around the world are looking for the best trades to make the most profit. Correlations are very important to a successful trader as traders can HEDGE positions or see if a correlated pair is about to BREAKOUT.  Correlations are a statistical measure of how two currency pairs move in relation to each other. A measure of -1 is when they track perfectly opposite to each other for example if EURUSD went up 100 pips and AUDUSD went down 100pips they would have a correlation value of -1. On the other hand A value of 1 is when they both move perfectly with each other. So both move up 100 pips together. It is very rare to find perfect correlations but some are very close to 1. However a common example is A BONDS yield and price. So for example If the Price of the bond rises the yield falls and vice versa this is perfectly inversely correlated. Here are some examples of Correlation over hourly charts on some of the most popular currency pairs. AUDUSD - EURUSD : 0.949 AUDUSD - NZDUSD : 0.998 AUDUSD - GBPUSD : 0.957 EURUSD - NZDUSD : 0.954 EURUSD - GBPUSD : 0.999 NZDUSD - GBPUSD : 0.962 As you can see here some such as AUDUSD - NZDUSD are very …
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