EUR/USD vs. USD/CHF & AUD/USD vs. USD/CAD "Divergence" Trading

Discussion in 'Forex Trading' started by increasenow, Mar 5, 2009.

  1. EUR/USD vs. USD/CHF & AUD/USD vs. USD/CAD "Divergence" Trading

    The various "pairings" here heavily move in the OPPOSITE direction...my goal is to expose "overbought" or "oversold" situations and look for key reversals as the one pair plays off another...much research will be done...

    anyone ever look at this?
     
  2. This is a well known phenomenon, especially in the case of the EUR/USD vs USD/CHF. Google "reverse correlation" re: FOREX pairs, and you should come up with quite a bit of information. See below as an example --
     
  3. do you use this strategy ever to trade off of?
     
  4. No.
     
  5. yeah very anti-correlated but like he said not realistic enough to actually make much use of it trading wise.