FOREX THEORY
Currency Crosses Are Trend-y (Part 2)
The day to day economic activities of the U.S. can keep U.S.
dollar based currencies such as EUR/USD (above) from making smooth trends.
Conversely, we can see that during the same date range,
cross currency EUR/JPY made a much, much smoother ride to the top. This was
probably due to less spikes that came from U.S. data. So as you can see, both
charts showed the euro rise during the same time period, but the one without
the U.S. dollar (EUR/JPY) made for a much easier trade.
Our resident currency cross monster Cyclopip caught a
hundred pips by riding EUR/JPY’s trend. Check out how caught that move!
If you are a trend following kinda dude, then currency
crosses may be easier to trade than the major pairs. It will be easier for you
to spot the trend and be more confident in your entry points because you know
that these technical levels hold more than they do for the majors.
In the next section, we’ll discuss how playing with currency
crosses can also allow you to take advantage of the interest rate
differentials. Now that’s like a cherry on top of a sundae!
 The day to day economic activities of the U.S. can keep...){kind=link}
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