Quote Originally Posted by RazorX View Post
Hi Peat


When you say the two pairs are you meaning the USDCHF mirrors EURUSD or the EURCHF?
The Eur/Usd and USD/CHF almost always move in exactly the opposite direction to one another. And this will be absolutely true unless there is some change in Eur/Chf. In currencies there are always three pairs that are linked in an eternal triangle and if the maths gets out of kilter then there will be someone arbitraging it to get it back in line.
Think of it this way, if you shorted the Eur/Usd and at the same time shorted the USD/Chf (with the same size trade) then your positions are 1/ long Euro, short USD and then 2/ long USD and short CHF. So the USD positions would cancel out and you'd be left with what is effectively a short Eur/Chf position

If Eur/Chf stays the same the Eur/Usd and the Usd/Chf MUST move exactly opposite otherwise some computer or very fast human will re-align them making a buck in the process.

Thats how I see it anyway and arco has made comments that would support what I'm saying.

I guess volatility in Eur/Chf could upset this thinking.