here’s a 4 hour chart of the EUR/USD (euro vs. the US dollar). until recently, US stocks have been tightly correlated with the EURO (inversely correlated with the $USD). i’ve also warned several times in the last few months that when this correlation becomes disconnected, there is usually a reversion back to the correlation (i.e.- a correction in stock prices or a move up in the EUR/USD). recent history has shown the former to happen so it’s yet to be seen if this time will be different. something to keep an eye on.
