For the purpose of this question suppose that the dotted line on the "Eur/Usd" chart represents a self-fulfilling support level, causing price to increase after time t.
This would equate to a decrease in the value of a dollar (and an increase in the value of a Euro). So, if the dollar has fallen in value (as a result of this self fulfilling prophesy), then all other currency crosses involving the dollar will be effected by this. For example, would price not rise in the "Gbp/Usd" chart after time t?
Does this not mean that to trade any currency pair, we must also analyse all other crosses involving the currencies you're trading?
This would equate to a decrease in the value of a dollar (and an increase in the value of a Euro). So, if the dollar has fallen in value (as a result of this self fulfilling prophesy), then all other currency crosses involving the dollar will be effected by this. For example, would price not rise in the "Gbp/Usd" chart after time t?
Does this not mean that to trade any currency pair, we must also analyse all other crosses involving the currencies you're trading?