Hi Daniel Ed,
Have you looked at DayTrading.com’s guide to forex correlations?
Currency correlations can be useful in short-term trading, but they come with risks. For example, trading both AUD/USD and NZD/USD simultaneously could increase your exposure, as they often move together.
For risk management, you may be able to hedge by trading negatively correlated pairs (eg EUR/USD and USD/CHF) but short-term hedges aren’t perfect.
Another strategy is using lagging pairs – if AUD/USD moves first, NZD/USD might follow, offering a second opportunity. But again, it’s not infallible.
Ultimately, use correlations wisely to confirm trades or diversify risk, but avoid overtrading and double exposure. Always prioritize risk management.