Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

Search This Blog

Thursday, January 5, 2012

EURUSD vs. DAX correlation

There is an older post (http://markettechnicalview.blogspot.com/2011/12/eur-usd-vs-indices-correlation.html ) regarding the correlation between some equity indexes and the EURUSD cross.

This chart confirms that there could be periods of decorrelation between DAX Index and EUR-USD cross.   This can turn to “normal” at any time, making though the DAX to fall and the EURUSD to fall slower or to go sideways. There is also the possibility for the EURO to rally in order to “reach” the DAX Index.

However, the first scenario is more probable as the main indexes (SPX, DJIA, DAX…) are oscillating now in (or close to) a strong resistance zone. 


Posted by Adrian Filip at 4:08 PM
Labels:

2 comments:

  1. AnonymousMay 28, 2012 at 9:33 AM

    You're looking little a bit wrongly the correlation between Dax and Eur/usd.

    The difference is in amplitude. Take the direction from the euro but trade the dax only. This is the way to go.

    ReplyDelete
  2. Adrian FilipMay 28, 2012 at 10:19 AM

    Hello. Thank you for the comment. I did not analyse which of the two (EURUSD and DAX) is leading so I am not contesting what you say. However, my point was to show that the EUROUSD is not always closely correlated with the DAX.

    ReplyDelete

Subscribe to: Post Comments (Atom)