Currency Pairs selection

[angelnish]

Currency pair selection is the critical step in Forex as all other business activities are based on it. Currency correlation is the statistical analysis which helps you to select you currency pair in the Forex trade. The results of the currency pair correlation is not that simple but quite complicated and you need to extract your material by yourself. In this way you can select the currency pairs which will return you the optimal return on your investment and you can also switch between different currency pairs by carefully observing the currency pair correlation.

Please share your views about this.

[Korg]

I'm not 100% sure what it means by 'Currency correlation is the statistical analysis'. If it means comparing technical support levels on 2 different currency pairs and checking to see if they coincide then I would say I would agree, if you can do that in your trading, you'll improve your odds.

For example EUR/USD and GBP/USD. In both pairs, the major support levels could be touched at the same time, or they could be different, and both scenarios would change the way you would trade the pairs.

It's so complicated to explain in text...!