My Dow Jones Trade

My current EUR/USD trade employs a signal I developed based on the Dow Jones Industrial Average (DJIA), which I discussed in this earlier post. Yesterday, August 28, the DJIA spiked upwards over .6%, as you can see from the chart to the left.

Based on this uptrend, I placed a long EUR/USD trade today, August 29, since my historical analysis shows a correlation between a significant increase in the DJIA and the upward movement of the EUR/USD the next day. Here's how that trade's been going so far - as you can see from the chart, the EUR/USD pair is up around 30 pips today. If this trend holds until the end of the day it'll mark another success for my Dow Jones signal.

In addition to the Dow Jones average, other correlated indicators you may want to keep an eye on when trading the EUR/USD pair are the NASDAQ, British and European stock markets, the price of oil and other major commodities, and of course the Federal Reserve's interest rates (to name just a few).

Related topic:
Interesting Correlations Between the EUR/USD and the Dow Jones Industrial Average