Highly positive correlated pairs are considered to have the same economic ties. They include;
EUR/USD and GBP/USD
This is one of the many forex pairs that correlate. The forex pairs increase and decrease are often viewed as equals. They correlate so well because of their relationship with the US dollar, the pound, and the Euro. All three currencies are intertwined by their strong economic ties.
When trading with this two currency pair correlation, you can open two long positions since both currencies move in the same direction. If both the EUR/USD and GBP/USD increase in price, you can potentially make better profits with the two forex correlated pairs.
Alternatively, you can go short if you predict one currency pair will fall earlier than the other. If one fails, most likely, the other will follow alongside the previous currency pair.
Other Positive Correlated Pairs
- EUR/USD and AUD/USD
- USD/CHF and USD/JPY
- AUD/USD and NZD/USD
- EUR/USD and NZD/USD