Correlation between NZD/USD and EUR/USD, GPB/USD, AUD/USD

Correlation between currency pairs is a factor in trading CFD and should be considered before entering a trade.

In this post is the correlation between the NZD/USD and EUR/USD, GPB/USD, AUD/USD illustrated visual in the charts under the section Visual illustration. The purpose is to exemplify the correlation between currency pairs and give a little inspiration on how to think as a trader.

The correlation between NZD/USD and EUR/USD, GPB/USD, AUD/USD are usually strong as changes in the USD has effect on all the currency pairs in the same direction.

Visual illustration

Visual are the charts NZD/USD and EUR/USD, GPB/USD, AUD/USD illustrated; the charts illustrate how the currency pairs are moving in the same direction with a small delay. 

The NZD/USD is increasing (bullish) approximately at 2:15 and again at 9:45which is also the case for the EUR/USD, GPB/USD and AUD/USD; some of the currency pairs start to rise (bullish) at approximately 9:00 o’clock.  The EUR/USD is rising (bullish) for a shorter period than the NZD/USD, GPB/USD and AUD/USD.