{"id":9762,"date":"2022-10-13T04:44:23","date_gmt":"2022-10-13T04:44:23","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9762"},"modified":"2022-10-13T04:44:23","modified_gmt":"2022-10-13T04:44:23","slug":"currency-crosses-are-trend-y","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/13\/currency-crosses-are-trend-y\/","title":{"rendered":"Currency Crosses Are Trend-y"},"content":{"rendered":"\n<p>Since a majority of the forex market will deal with the U.S. dollar, you can imagine that many of the news reports will cause U.S. dollar-based currency pairs to spike.<\/p>\n\n\n\n<p>The US has the largest economy in the world, and as a result, speculators react strongly to U.S. news reports, even if it doesn\u2019t cause a huge fundamental shift in the long run.<\/p>\n\n\n\n<p>What this means for your charts is that you will see several \u201cspikes\u201d even if there is a trend emerging. This can make it harder to spot trends or range conditions.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade15-eurusd-crosses3.png\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade15-eurusd-crosses.png\" alt=\"Major Currency Pairs Not As Smooth As Currency Crosses\" title=\"Major Currency Pairs Not As Smooth As Currency Crosses\"\/><\/a><\/figure>\n\n\n\n<p>The day-to-day economic activities of the U.S. can keep U.S. dollar-based currencies such as\u00a0EUR\/USD\u00a0(above) from making smooth trends.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade15-eurjpy-crosses.png\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade15-eurjpy-crosses.png\" alt=\"Currency Cross Pair EUR\/JPY\" title=\"Currency Cross Pair EUR\/JPY\"\/><\/a><\/figure>\n\n\n\n<p>Conversely, we can see that during the same date range, cross currency\u00a0EUR\/JPY\u00a0made a much, much smoother ride to the top.<\/p>\n\n\n\n<p>This was probably due to fewer spikes that came from U.S. data.<\/p>\n\n\n\n<p>So as you can see, both charts showed the euro rose during the same time period, but the one without the U.S. dollar (EUR\/JPY) made for much easier trade.<\/p>\n\n\n\n<p>Our resident currency cross monster Cyclopip caught a hundred pips by riding\u00a0EUR\/JPY\u2019s trend. Check out how caught that move!<\/p>\n\n\n\n<p>If you are a trend-following kinda dude, then currency crosses may be easier to trade than the major pairs.<\/p>\n\n\n\n<p>It will be easier for you to spot the trend and be more confident in your entry points because you know that&nbsp;these technical levels hold more than they do for the majors.<\/p>\n\n\n\n<p>In the next section, we\u2019ll discuss how playing with currency crosses can also allow you to take advantage of the interest rate differentials. Now that\u2019s like a cherry on top of a sundae!<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/bpcdn.co\/images\/2010\/11\/13202158\/cherry-on-top.gif\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2010\/11\/13202158\/cherry-on-top.gif\" alt=\"\" class=\"wp-image-116678\"\/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.babypips.com\/learn\/forex\/taking-advantage-of-interest-rate-differential\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since a majority of the forex market will deal with the U.S. dollar, you can imagine that many of the news reports will cause U.S. dollar-based currency pairs to spike. The US has the largest economy in the world, and as a result, speculators react strongly to U.S. news reports, even if it doesn\u2019t cause [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[879],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9762"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9762"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9762\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}