Originally Posted by FX Pimp

Omellette


You will find that your basket will be all over the place as it's not really relative to Dollar strength or weakness.

Sure AUDUSD & USDCAD & NZDUSD & EURUSD & GBPUSD are but the rest, not so.
The Dollar will have some bearing however. For exmple EURGBP is a mix of EURUSD and GBPUSD, CHFJPY is a mix of USDCHF and USDJPY and so on.
This is why I choose, with this strategy to ignore these pairs as generally GBPUSD & EURUSD tend to travel in the same direction mostly. So if both Euro and Pound are either strong or weak, where does that leave EURGBP ?
A little bit sideways.
I tend to use that particualr pair if I am looking to trade Either Cable or Euro, just to ascertain which is likely to move the better.

I hope this helps