TraderEye Market View: Using correlations in short term trading

Wednesday, April 10, 2024

Using correlations in short term trading - what does Gold know and we don't ?

The American announcement regarding Core CPI (MoM) (Mar) resulted in a fall of about 120 pips in pairs against the dollar, in the 15 minute graph you can see that the price of the gold contract immediately recovered from the sharp movement of the dollar against it and the other pairs do not recover. What does gold know and currency pairs don't? A very intelligent use can be made of this information on the response gap between correlative products.

Attached is a 15-minute graph showing the correlation gap between the Gold contract and the AUDUSD currency pair :

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