Im opening this thread up to discuss correlation in the forex markets. I would like to discuss how certain, indexes, gold, oil, bonds, interest rates, etc can affect the probabilities of certain crosses moving in one direction or the other. I have become successful trading with my method, but would like to understand more about how I can have an edge by studying these correlations. I hear about people watching the dow to gauge what direction the gbp/yen may move, or watching the dollar index to view where eur/usd may move. How do you use these to guage where your favorite pair moves?
Things can get Real ugly, Real quick!!!