please any one say me which one currency is most effected to silver ???
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please any one say me which one currency is most effected to silver ???
I think - it is USD ... (costs of silver is in dollars)
i know that but which one pair is most effected to silver???Quote:
Originally Posted by newdigital
eurusd or gbpusd?????
If you are talking about fundamental news events so - there are no any pairs there ... we are having USD news (or US news), EUR news and so on.
Just an example - this silver/usd price was moved by the following news event :
================
2013-02-03 15:00 GMT | [USD - ISM Manufacturing PMI]
- past data is 57.0
- forecast data is 56.0
- actual data is 51.3 according to the latest press release
if actual > forecast = good for currency (for USD in our case)
==============
U.S. Manufacturing Index Indicates Notably Slower Growth In January
While the Institute for Supply Management released a report on Monday showing modest growth in U.S. manufacturing activity in the month of January, the pace of growth slowed much more than economists had been anticipating.
The ISM said its purchasing managers index fell to 51.3 in January from a revised 56.5 in December. A reading above 50 indicates continued growth in the manufacturing sector, but economists had expected the index to show a much more modest decrease to a reading of 56.0.
With the much steeper than expected decrease, the purchasing managers index fell to its lowest level since hitting 50.0 in May of 2013.
==============
So, you can see :
Attachment 5232
thanks for reply but i make rule never listen newsQuote:
Originally Posted by newdigital
May be - you are talking about correlation of the pairs ... example: EURUSD/USDCHF, GBPUSD/EURUSD and so on ...
Well ... I found - look at this article : Gold and the AUDUSD have a positive correlationQuote:
Originally Posted by newdigital
And look at this image (the source is here) (GLD is GOLD, USO is OIL, SLV is SILVER):
Attachment 5244
Currency Pairs Correlation in Forex Market: Cross Currency Pairs
As a forex trader, if you check several different currency pairs to find the trade setups, you should be aware of the currency pairs correlation, because of two main reasons:
1- You avoid taking the same position with several correlated currency pairs at the same time and so you do not multiply your risk. Additionally, you avoid taking the positions with the currency pairs that move against each other, at the same time. 2- If you know the currency pairs correlations, it may help you to predict the direction and movement of a currency pair, through the signals that you see on the other correlated currency pairs.
Now I explain how currency pairs correlation helps. Lets start with the 4 major currency pairs: EURUSD ; GBPUSD ; USDJPY and USDCHF.
In both of the first two currency pairs (EURUSD and GBPUSD), USD works as the money. As you know, the first currency in currency pairs is known as the commodity and the second one is the money. So when you buy EURUSD, it means you pay USD to buy Euro. In EURUSD and GBPUSD, the currency that works as the money is the same (USD). The commodity of these pairs are both related to two big European economies. These two currencies are highly connected and related to each other and in 99% of the cases they move on the same direction and form the same buy/sell signals. Just recently, because of the economy crisis, they moved a little differently but their main bias is still the same.
What does it mean? It means if EURUSD shows a buy signal, GBPUSD should also show a buy signal with minor differences in the strength and shape of the signal. If you analyze the market and you come to this conclusion that you should go short with EURUSD and at the same time you decided to go long with GBPUSD, it means something is wrong with your analysis and one of your analysis is wrong. So you should not take any position until you see the same signal in both of these pairs. Of course, when these pairs really show two different direction (which rarely happens), it will be a signal to trade EUR-GBP. I will tell you how.
Accordingly, USD-CHF and USDJPY behave so similar but not as similar as EURUSD and GBPUSD, because in USD-CHF and USDJPY, money is different. Swiss Franc and Japanese Yen have some similarities because both of them belong to oil consumer countries but the volume of industrial trades in Japan, makes JPY different.
Generally, when you analyze the four major currency pairs, if you see buy signals in EURUSD and GBPUSD, you should see sell signals in USDJPY. If you also see a sell signal in USD-CHF, then your analysis is more reliable. Otherwise, you have to revise and redo your analysis.
EURUSD, GBPUSD, AUDUSD, NZDUSD, GBPJPY, EURJPY, AUDJPY and NZDJPY usually have the same direction. Just their movement pattern sometimes becomes more similar to each other and sometimes less.
What do I prefer?
If I find a sell signal with EURUSD and GBPUSD and a buy signal with USDJPY, I prefer to take the short position with one of the EURUSD or GBPUSD because downward movements are usually stronger. I will not take the short position with EURUSD or GBPUSD and the long position with USDJPY at the same time, because if any of these positions goes against me, the other one will do the same. So I don’t double my risk by taking two opposite positions with two currency pairs that move against each other.
How to use the currency pairs correlation to predict the direction of the market?
When I have a signal with a pair, but I need confirmation to take the position, I refer to the correlated currency pairs or cross currency pairs and look for the confirmation. For example I see a MACD Divergence in USDCAD four hours chart but there is no close support breakout in USDCAD four hours or one hour chart. I want to take a short position but I just need a confirmation. If I wait for the confirmation, it can become too late and I may miss the chance. I check a correlated currency pair like USDSGD and if I see a support breakout in it, I take the short position with USDCAD. Now the question is why I don’t take the short position with USDSGD and I use its support breakout to go short with USDCAD? I do it because USDCAD movements are stronger and more profitable. I use USDSGD just as an indicator to trade USCAD.
It happens that you take a position with a currency pair, but it doesn’t work properly and you don’t know if it was a good decision or not. On the other hand, you don’t see any sharp signal on that currency pair to help you decide if you want to keep the position or close it. In such cases, you can check a correlated currency pair and look for a continuation or reversal signal. It helps you to decide about the position you have.
Sometimes, some correlated currency pairs don’t move in the way that they are supposed to move. For example EURUSD and USDJPY go up at the same time, whereas they usually move against each other. It can happen when Euro value goes up and USD value doesn’t have a significant change, but at the same time JPY value goes down, because of some reason. In these cases, you can use the below table to find and trade the currency pair that its movement is intensified by an unusual movement in two other currency pairs. In this example, if EURUSD and USDJPY go up at the same time, EURJPY will go up much stronger (see the below chart).
Or if EURUSD goes up and AUDUSD goes down at the same time, EUR-AUD goes up strongly.
Another important example: If EURUSD goes up and GBPUSD goes down at the same time, EURGBP goes up strongly. Maybe this is the most important case that we can trade based on this rule. It happens many times that EURUSD and GBPUSD move against each other and that is the best time to trade EURGBP. Now you know why EURGBP doesn’t move strongly most of the time. It is because EURUSD and GBPUSD move in the same direction most of the time. For example they go up at the same time and so EURGBP doesn’t show any significant movement because when both of the currencies of a currency pair go up or down at the same time, that currency pair doesn’t show any strong movement and direction (I hope you know why a currency pair goes up or down. It goes up when the first currency value goes up OR the second currency value goes down. For example EURUSD goes up, if Euro value goes up or USD value goes down. If this happens at the same time, then EURUSD goes up much stronger).
The below chart includes almost all of these unusual movements and their results on the third currency pair.
if EURUSD and USDJPY then EURJPY means if EURUSD and USDJPY go up at the same time, then EURJPY goes up much stronger.
Attachment 5245
Australian Dollar Strongly Correlated to Gold, Silver, Steel Prices
The short-term correlations between the Australian Dollar/US Dollar exchange rate against gold and silver prices trade near record strength. Long positions in the Australian Dollar against the US Dollar likewise offer the advantage of interest rate payments. This stands in contrast to holding long positions in Gold, Silver, Crude Oil and other commodities; there are carrying costs with buying.
The Australian Dollar will likely remain a speculator’s favorite as a strong proxy for Gold, Silver, and broader metals prices through upcoming forex trading.
Forex Correlations Summary
View forex correlations to the SPDR Gold ETF Trust (GLD), United States Oil Fund ETF (USO), SPDR Dow Jones Industrial Average ETF Trust (DIA), UK FTSE 100 Index, and IShares Silver Trust ETF (SLV) prices.
Attachment 5247
Correlation between Australian Dollar/US Dollar versus SPDR Gold Trust
The Australian Dollar remains very strongly correlated to precious metals prices, and the very short-term link between the AUDUSD and the SPDR Gold Trust (GLD) trades near records. Fundamentally, this makes sense: gold is a top Australian export and its elevated price means that the total value of exports has risen accordingly.
Viewed in this light, the AUDUSD seems an attractive proxy to holding positions in gold. Whereas there is a carrying cost associated with holding long positions in Gold, long Australian Dollar/US Dollar positions will actually produce net interest payments.
The clear caveat is that any sharp sell-offs in the S&P 500 would likely break the AUDUSD’s short-term link to Gold prices, but the S&P 500 Volatility Index (VIX) currently show the lowest volatility expectations since July. Slow stock market moves pose little risk to the AUDUSD-GLD correlation.
http://media.dailyfx.com/illustratio..._Picture_2.png
Australian Dollar/US Dollar Exchange Rate (lhs)
Market Vectors Steel Index Fund (SLX) (rhs)
Correlation between Australian Dollar/ Exchange Rate and iShares Silver Trust (SLV)
The Australian Dollar remains a top choice for those looking to speculate on the direction of broader commodity prices and for good reason. The correlation between the AUDUSD and industrial metals likewise remains very strong, seen primarily through instruments such as the Market Vectors Steel Index Fund (SLX, pictured above) and iShares Silver Trust (SLV).
We see that the Aussie Dollar remains a strong proxy for speculative positions and hedges in metals prices. The fundamental reasoning is sound: Australia exports a substantial amount of both precious and industrial metals in both volume and monetary value. The fact that long-AUDUSD positions likewise offer net interest rate payments make them especially attractive; those holding Silver and other metals most often incur carrying costs.
The Australian Dollar should continue to appreciate if Gold, Silver, and broader metals prices remain elevated.
There is indicator for Metatrader 5 to check currency correlation - MFCS Currency Correlation Chart
Just for information (those charts were made using this indicator) -
XAUUSD/AUDUSD :
Attachment 5248
XAGUSD/EURUSD :
Attachment 5249
XAGUSD/USDCAD :
Attachment 5250
Currency Correlations, Part I
A short video introducing traders to the subject of currency correlations.
http://youtu.be/st1f6Kn52lk
Currency Correlations, Part II
The second video in a two-part series on currency correlations.
http://youtu.be/TMicvKjaze8
you give me so much importance it's my pledge my question is so simple if eurusd is going up so silver go up either eurusd is going down so silver follow it and go down ?
i read what u suggest me it mean that gold silver are follow audusd pair????
Yes but ... with some probability ... you can look at the image/table on this post : positive correlation with SILVER are having EURUSD and AUDUSD (with some probability less than 1), and negative correlation is having USDCAD (means - if USDCAD is on uptrend so SILVER is on downtrend). ... but with some probability tooQuote:
Originally Posted by lion of gail
It is article ... AUDUSD is having positive correlation with gold and silver, and USDCAD is having negative correlation with them (with some probability for example).Quote:
Originally Posted by lion of gail
You can always open gold (XAUUSD) or silver (XAGUSD) charts in MT5 and check it using MFCS_Currency_Correlation_Chart indicator from this post. may be - there are some indicators for MT4 to check it ...
thanks for help but i want one source which one follow by silver if any currency or index if u know so please share here
Talking Points:
- Correlations are useful to find direction for a variety of markets.
- Oil and the USDCAD have a negative correlation.
- Once direction is found, plan your trading strategy for another asset.
Understanding market correlations can allow traders to have an option on a commodity based off of the direction of their favorite currency pair. The idea is to take two seemingly different markets or assets and see how market price moves relative to each other. Today we will review using the USDCAD currency pair to determine the direction of USOIL (WTI) through the use of a correlation.
Let’s get started!
Oils Correlation
When someone mentions Oil, currency traders should immediately think of the USDCAD as a correlating currency pair. These assets are negatively correlated meaning they generally can be seen moving in opposing directions. This occurs because the USDCAD quotes the price of Canadian Dollars in terms of USDollars. USOil represents Oil per barrel priced in terms of US Dollars. With the USD being on opposing sides of each equation this means that the two assets will move in opposing directions when the USD strengthens or weakens.
Secondly, the CAD has a high correlation to Oil due to Canada’s extensive oil deposits. Most of this oil is purchased by the US causing a transfer of funds along the way. As oil prices fluctuate, this increases or decreases the amount of funds transferred from USD to make purchases of Canadian resourses. These transfers essentially change demand for the currency and can directly cause changes in the USDCAD currency pair as well.
Learn Forex – AUD/USD & Gold (XAU/USD) Correlation
http://media.dailyfx.com/illustratio..._Picture_1.png
Trading the Correlation
The key to trading negatively correlated assets is finding a direction or having a fundamental opinion from one of the underlying assets before making a trading decision. If traders are seeing the USDCAD push to higher highs, this could easily be the catalyst for a bearish bias on Oil. Conversely if Oil is trending upwards traders would have reasonable expectations of the USDCAD traveling towards lower lows.
As you can see, this information is very useful to traders that already have an opinion on either Oil or the USDCAD currency pair. Often traders that are bullish on Oil choose to trade the USDCAD instead of the metal itself. The Canadian Dollar carries a 1.00% banking rate, meaning traders can earn additional interest while trading a bullish bias on Oil. If a trader is bullish on the USDCAD currency pair, traders can in turn sell Oil to avoid accumulating interest on their trading balance.
---Written by Walker England, Trading Instructor
More...
please refer some indicator which indicate trend of silver :s:
Trend for silver? XAGUSD?
Ichimoku ... this indicator may indicator the trend for anything
Example.
H4 - flat within primary bearish :
Attachment 6615
D1 - it was flat with bearish just started :
Attachment 6616
H1 - flat, Chinkou Span is crossing historical price from above to below to reversal from bullish to bearish :
Attachment 6617
The currency intervention program as the government tries to support the real in an effort to fight above-target inflation. The Federal Reserve launched its latest Beige Book study this week. It showed only moderate growth of the economic climate for the six weeks of July and the early part of August. Employers had little incentive to give raises, even though hiring was up somewhat and inflation was tame.
I found good indicator in MT4 CodeBase here (indicator is attached) so we can check the correlation tables:
Attachment 11223
Attachment 11222
This is the chart made by this indicator - we see the positive correlation between EUR and CHF, and between AUD and Gold (XAU):
Attachment 11221
Negative correlation between USDZAR and AUDUSD/USDJPY/NZDUSD - this thread
Attachment 12555
Attachment 12556
Attachment 12557
- Gold prices have tumbled, but direct FX impact limited as correlations weaken
- The US Dollar and Australian Dollar may prove the most sensitive
- See the charts and analysis below for further details
Gold prices have tumbled and yet the FX impact has been limited as correlations weaken. This effect might be temporary, however; here’s what we’re watching.
Correlation between the Dow Jones FXCM Dollar Index and the Price of Gold
https://media.dailyfx.com/illustrati..._Picture_4.png
Data Source: Bloomberg. Chart Source: R. Prepared by David Rodriguez
The correlation between the price of gold and the Dow Jones FXCM US Dollar Index fell and lingered around a low of -0.7 through May as gold acted as its traditional hedge against US Dollar volatility. The unexpected sharp drop in gold price recently disrupted the steady negative correlation, pushing it near -0.3. Gold prices may nonetheless settle into their familiar relationship with the US Dollar as the US Federal Reserve’s interest rate liftoff looms and the turbulence in the global markets subsides.
Gold has traditionally served as a hedge against US Dollar weakness and high inflation. If the Dollar strengthens and inflation drops on interest rate hikes, the price of gold by extension may trade in the opposite direction and regain its negative link to the US currency.
Correlation between the Australian Dollar and the Price of Gold
https://media.dailyfx.com/illustrati..._Picture_3.png
Data Source: Bloomberg. Chart Source: R. Prepared by David Rodriguez
The strong positive correlation between the Australian dollar and the price of gold had been slowly diminishing since late May. The recent slide in gold price accelerated the process, driving the correlation to a near-zero level. Yet Australia remains an important exporter of gold as the precious metal accounts for 5 percent of total merchandise trade.
Perhaps in the near-term we may see the price of gold at a low correlation to the Australian Dollar as the US Dollar itself grows less-correlated. Yet it stands to reason we may see the AUD regain its link through the medium term—particularly as gold prices respond to planned interest rate hikes from the US Federal Reserve.
Correlation between the British Pound and the Price of Gold
https://media.dailyfx.com/illustrati...s_body_GBP.png
Data Source: Bloomberg. Chart Source: R. Prepared by David Rodriguez
The correlation between the British Pound and the price of gold continues to fluctuate in a broad range this year, rising to 0.6 but at points going to a neutral 0.0. Much of this is linked to the US Dollar’s weakened correlation to the precious metal, but it is also worth noting that the British Pound is likely to move on likely interest rate moves from the Bank of England. UK inflation is still quite below the central bank’s official target, but BoE governor Mark Carney spoke recently that the MPC is ready to raise the benchmark rate as early as the turn of the year.
The British Pound may further detach from the price of gold as the strength of the Sterling will depend on the relative timing of interest rate liftoff by the BoE and US Federal Reserve.
Forex Correlation Summary
Forex correlations against major currencies, Crude Oil, and the S&P 500 index for the past 30 calendar days:
https://media.dailyfx.com/illustrati..._Picture_1.png
more...
CurrencyChart - indicator for MetaTrader 4
We can plot many prices for many pairs using just one chart:
Attachment 18112
Attachment 18113
ND, here is a correlation indicator found at mql5 website... is there a MT4 version of it? I found it's a interesting indy. thanks,
https://www.mql5.com/en/code/897
I did not find the same indicator for MT4 sorry.Quote:
Originally Posted by wccmcd
There are some other interesting indicators based on Pearson correlation:
- Recycle (in russian language only, use google translation using this link)
- Correlations script (in russian language only, use google translation using this link)
- the other indicator from same coder: Dejavu indicator (in russian language only, use google translation using this link)
thanks ND, you are always so helpful.
Try this oneQuote:
Originally Posted by wccmcd
bar_chart indicator is on this thread:
Attachment 26407
This video is on the British pound, its history, and what traders should know about it before trading the GBP.
Attachment 27350
http://youtu.be/Y3---DOdqaw
Several market sessions and centers, 24 hours trading schedule, facilities to borrow funds via leverage, facilities to trade from home, etc. all are helping retail traders to earn money in forex. But simple currency exchanges can’t be solution in all time. A trader must be careful in choosing currency pairs as currencies have some strong or weak correlation and he must encounter all the significant aspects so that he can ensure profitable trading voyage.
Well, my favourite trading pair is eur/usd. I guess that'll work for silver as well (silver instead of euro).
Currency risk, or exchange rate risk, depict the conceivably harming effect that changes in the estimation of a currency pair can have. There is a scope of ways the term currency risk is connected yet it is generally used to portray the negative impacts of forex rates on the estimation of an advantage that is being moved crosswise over outskirts.
Currencies like the Euro (EUR) and Japanese Yen (JPY) can also have indirect effects on silver prices, particularly when these currencies strengthen or weaken against the USD.Quote:
Originally Posted by newdigital
