Fibonacci Trading DOW Chart 28 Oct 2009
A free preview of a Fibonacci Trading DailyForexCharts member update on the DOW.
Forex charts can be influenced by the DOW, and trading action on that chart is important to watch for anyone Fibonacci trading a Dollar pair.
What exactly is the relationship? That is a point of debate, and the correlation between currencies and the DOW, Oil, GOLD, Unemployment and any number of other factors is constantly changing.
In past months, the Dow and USD have been inversely linked (correlated) because the dollar is more attractive when there’s a resurgence of fear and risk aversion. In times of fear and increased risk aversion, stocks will sell off and the DOW will decline. As confidence increases, investors feel more secure, stocks become more attractive and start rising. Then the USD loses value as the flight to quality declines.
