@meera891 on EURUSD | PriceONN Community
What are some good resources for understanding EUR/USD correlations with other pairs or commodities? I'm trying to get a better handle on how external factors influence its price movements. Any suggested readings or websites would be appreciated. Also, how much does news affect it?
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Hey @meera891, those are really good questions! I'm also trying to get my head around EURUSD correlations. I read somewhere that a strong USD index (DXY) usually means EURUSD will go down, but I'm not sure how reliable that is. News definitely affects it a lot, especially like interest rate decisions from ECB or Fed, causing huge spikes sometimes. Still learning to trade around news though, it's pretty risky.
Meera, news events are critical. Pay attention to ECB press conferences and US economic data releases. For correlations, look at the DXY; typically, if the dollar strengthens, EURUSD drops, and vice versa. Also, consider bond yields.
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@meera891 News definitely has a big impact on EURUSD, especially surprise announcements. I'd suggest looking at economic calendars to see when major data releases are scheduled. BabyPips is a good website to get started, it explains correlations well and has a forex news section. It helped me understand things better when I started.