![\"Correlation](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/chart-correlation.jpg\")
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Sometimes it is useful to see how correlated a currency pair is to its related commodity. If you understand what is happening with the supply and demand of the commodity, it can help you predict the price movement of the related currency pair.<\/p>\n
To see a short list of commodities that are usually highly related to currency pairs (and why), read this post<\/a>.\u00a0There are actually more, but those are the major ones.<\/p>\n I provide a list at the end of this post.<\/p>\n Even though a country's economy depends heavily on a commodity, its currency will never move in total\u00a0unison with that commodity. Obviously, this is because there are so many factors that determine the value of a currency, not just the price of its major exports or imports.<\/p>\n Things like wars, economic health of the country and political climate can also affect Forex prices. In addition, one currency in a pair may be highly correlated, but they other may not be.<\/p>\n But that's not all. It can also be useful to see the correlation between two currency pairs.<\/strong><\/p>\n For example, if the other EUR pairs are moving up, but the EURUSD hasn't moved yet, that could be a sign that it is a good time to go long the lagging pair. That's just one idea.<\/p>\n So how to you see this Forex correlation?<\/p>\n It is actually quite simple.<\/p>\n In this post, I'll show you how to do it and you can even play around with some live charts yourself.<\/em><\/p>\n The easiest way that I know to do this is to use TradingView<\/a> to overlay charts. Watch the video below to see how to do it. If you want the text version, it is provided below the video.<\/p>\nHow to See Forex Correlation Between Markets and Other Pairs<\/h2>\n