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Keep an Eye on Divergent Pairs
One of the ways I like to trade the FX market is to find "normal relationships" diverge. What do I define as a normal relationship? Easy...pairs that typically move together under normal market environments. A great example is the GBP/USD and the EUR/USD. Both pairs typically move together. Both currencies share similar fiscal policies and are both matched up with the USD. If you look at a monthly chart you will see the similarities: (Charts and Examples)
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- wannatradefx
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- Trout
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