USD Crosspairs

[jimenwzgcan]

Hi,
Perhaps a silly question but it will seem sensible to me.

If we're trading variable base currency pairs against the USD. (ie GBP/USD, AUD/USD and NZD/USD) then as a general rule would all of them follow the identical trend?
All return for example because of scaling USD!!
AND CONVERSELY - USD base currency pairs (ie USD/JAP, USD/CAD) be falling because of because of stronger USD which makes it's pair weaker.

Hope that this is explained well enough. Just asking if this logic would be a fair assumption.

Given the fact that is indeed true - then if you are going short on state AUD/USD then it would be pointless going short on JPY/USD, because of conflicting trends.
Ideas please

[poliyeipkm]

Keep in mind that some pair has two currencies involved ... So USD pairs aren't perfectly correlated because of their very own 2nd currency.

[jimenwzgcan]

Thanks FerruFX,
I know everything you're saying. From my observations, it seems to be a rule of thumb. I've saved myself out of some bad transactions by applying the concept.

[poliyeipkm]

Thanks FerruFX, I know what you're saying. In my observations, it seems to be a general rule. I've saved myself out of some bad transactions by applying the concept.

Don't get me wrong ... I'm not saying your way of looking at bunch of pairs isn't fine. As a global picture, it is fine ...

[caxxejok15]

To follow up to what Ferrufx said, see https://www.nigeriaforextrading.com/...art-trade.html for the mathematical relationship between all pairs.

Greatest,

Dave

[jimenwzgcan]

Sorry - that should read USD base currency pairs be climbing.