Good morning. In forex, USD/CHF (the “Swissie”) is often used as a safe-haven gauge. When global markets panic, traders tend to buy the Swiss franc,thanks to Switzerland’s long history of stability.
It’s why USD/CHF sometimes moves opposite to risk pairs like AUD/USD or NZD/USD.
-Shaun A, Jonathan Kibbler, Jordon Mellor
MARKETS
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LEARN
Correlation Is the Shortcut Most Traders Ignore
One of the biggest traps in forex is thinking you’re “diversifying” when really, you’re just doubling your risk. Correlations between pairs are the shortcut most traders overlook, and ignoring them can wreck a strategy.
This isn’t about being a math genius; it’s about noticing which pairs tend to move together, and which ones don’t.
Here’s what you need to know:
1. EUR/USD and GBP/USD – The Classic Twins
These two pairs move almost in sync because both are heavily tied to the U.S. dollar. If EUR/USD is climbing, chances are GBP/USD is too. That means going long on both isn’t two trades, it’s basically one trade with double exposure. A win feels bigger, but so does a loss.
2. USD/JPY and U.S. Yields
Unlike the “twins,” USD/JPY dances to the tune of bond yields.
When U.S. Treasury yields climb, USD/JPY usually follows. When yields fall, yen strength often comes back. Watching the 10-year note alongside this pair is a shortcut to understanding its moves.
3. Hidden Correlations With Commodities
It’s not just currencies. AUD/USD often tracks iron ore prices, and USD/CAD is tightly linked with oil. If crude is ripping higher, shorting CAD blindly is asking for trouble. These relationships aren’t perfect, but they’re strong enough that traders who ignore them often get blindsided.
4. Why Correlations Save Your Risk
The biggest benefit of tracking correlations is risk control. If you’re long EUR/USD and GBP/USD at the same time, you’re effectively doubling down on a single bet against the dollar. A better play might be splitting exposure, one dollar pair and one cross, so you’re not trapped by the same driver.
My Takeaway
Correlations aren’t a fancy add-on, they’re basic survival. If you ignore them, you’re not diversifying, you’re just multiplying the same risk.
You can actually find tools like correlation matrices on MyFXBook or TradingView. It makes it easy to see the links in real time. The market already gives you these shortcuts, the edge comes from paying attention.
TRADER INSIGHTS
Swing, Scalp, or Hold? Here’s How to Decide
Let’s start thinking outside the box.
When you want to do some DIY around the house, you need the right tool for the job.
Trading should be the same.
We should use specific strategies for a specific purpose.
Too often, retail traders fall into the trap of forcing one strategy onto every market.
Sometimes the market calls for a bigger picture strategy
A great example of this is Gold & Silver this year.
The metals have been on a tear, and I personally have tried to buy Silver on every pullback.
Why? Deep macro themes:
Global uncertainty and geopolitical risk
The Federal Reserve’s dovish pivot and rate cuts
Weakening USD trends
Inflation fears creeping back in
This kind of setup is not for short-term strategies. It’s a longer-term narrative that calls for swing trading or position trading. You let the fundamentals play out over weeks, not minutes.
If you used a tight stop or low timeframe strategy here, you’d probably get shaken out of a perfectly good idea.
Short-Term Tools for Short-Term Plays
Every year, the stock market has a tendency to rally into the year-end, often dubbed the “Santa Rally.” It’s not a new trend, and while it doesn’t guarantee profits, it does tip the odds in your favour.
This kind of setup is perfect for short-term momentum strategies. There’s no need to marry the trade. You’re in, you ride the seasonal sentiment, and you get out when the momentum slows.
Your Strategy Isn’t Your Identity
Think of strategies as tools.
The best traders don’t just have a style, they have a toolbox.
They know when to use each one based on the setup in front of them.
CHART BREAKDOWN OF THE DAY (NZD/USD)
NZD/USD is attempting to stabilize around the 0.5800 mark after sliding from the 0.6000 resistance earlier in September. The pair is trading below both the 50-day and 100-day SMAs, showing sellers still have the upper hand. Immediate support rests at 0.5820 and 0.5736, with a deeper floor at 0.5690. If buyers can reclaim 0.5820, a bounce toward 0.5900 is possible, but staying under 0.5820 keeps the bias tilted bearish.
DAILY TRADING PSYCHOLOGY NUGGET
“The market is a device for transferring money from the impatient to the patient.” In trading, rushing for quick wins often leads to costly mistakes, while patience allows you to wait for setups that align with your plan and offer real edge.
TODAY’S MOST TRENDING MARKET NEWS (SEPTEMBER 30, 2025)
credits: AP Photo/Eugene
Asian markets were mixed as investors braced for a possible U.S. government shutdown, with weaker Chinese factory data adding to the jitters. (source: apnews)
GAMES
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ANSWER
Answer: A Candlestick