Global currencies are not driving isolated trends. The apparent technical movement of two currencies in a pair may have an impact on the behavior of each currency in question. In the view of an intermediate or beginning trader, a third currency may also have some impact on the rise or fall of a seemingly unrelated pair.
1. Importance of Technical Analysis
Technical analysis also covers the majority of the trading decisions of the independent speculator, but it is important to provide some attention to basic news for a full summary of what is happening in the market at that specific moment. Neither the weather, the drought, the hostile takeovers nor the CEOs have a real effect on currency values, but the timing of the release of economic reports can decide whether or not a trade is viable.