It is possible to use currency crosses even when you are just trading the majors. Many newer traders will feel more comfortable when they can focus their energy on trading just the major currencies. The reason is the fact that those major currencies make it easier to get into and out of trades at will.
What happens if you see a buy signal for two currencies at the same time?
For example, if you have the AUD/USD and the EUR/USD giving buy signals, which one should you jump on? You will need to examine the EUR/AUD cross in order to get a better sense of which one is the right trade.
If the EUR/AUD (in blue) is moving downward, then the AUD is stronger than the Euro at this moment. It may be best to place your buy trade in the AUD/USD (in orange), if that is the case.
Which Crosses to Use?
Checking the crosses when trading the majors is simply a way to check the relative strength of the majors you want to trade.
- Trying to decide between buying GBPUSD and USDCHF? Check the GBPCHF.
- Trying to decide between buying GBPUSD and USDJPY? Check the GBPJPY.
- Trying to decide between buying EURUSD and USDCHF? Check the EURCHF.
- Trying to decide between buying USDCHF and USDJPY? Check the CHFJPY.
- Trying to decide between buying EURUSD and USDJPY? Check the EURJPY.
Every one of these is important to examine carefully to ensure that you have selected the right currencies to make your trades moving forward. After all, it can get very dicey to try to select specific currencies that you are going to trade in if you aren’t sure which ones will provide you with the best value. Don’t let yourself get caught in the mix like that. Always make sure you know which one will be stronger based on market trends.
Disclaimer: All information provided here is intended solely for study purposes related to trading financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity, analysis, or similar general recommendation regarding the trading of investment instruments. The content, in its entirety or parts, is the sole opinion of SurgeTrader and is intended for educational purposes only. The historical results and/or track record does not imply that the same progress is replicable and does not guarantee profits or future profitable trading records or any promises whatsoever. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose.