I am a completely technical trader and stick to 4 main pairs; EUR/USD, AUD/USD, USD/JPY, and the GBP/USD. I wanted to get other trader's opinions on whether or not my rational for sticking to these pairs is justified or not. To clarify, I have been doing well trading these pairs and have learned their price action quite well. I don't plan on changing a working strategy any time soon. However the greater detail I understand the market as a whole the better trader I can ultimately be.
So my question is about the technical movements of a pair such as the EUR/AUD when there is no real fundamental play occurring. My suspicion is this: When the EUR/AUD is rising, it is because it is reacting to the EUR/USD going up, and the AUD/USD going down and not necessarily because of technical analysis patterns on the EUR/AUD chart. I'm curious as to if it's truly as reactive in nature as I am suspecting it is, and only having real movements due to the much higher volume traded pairs, especially the EUR/USD.
What are your thoughts/experiences?
So my question is about the technical movements of a pair such as the EUR/AUD when there is no real fundamental play occurring. My suspicion is this: When the EUR/AUD is rising, it is because it is reacting to the EUR/USD going up, and the AUD/USD going down and not necessarily because of technical analysis patterns on the EUR/AUD chart. I'm curious as to if it's truly as reactive in nature as I am suspecting it is, and only having real movements due to the much higher volume traded pairs, especially the EUR/USD.
What are your thoughts/experiences?