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Best Crosses Ror Ranging Trading

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CROSSES ARE TYPICALLY BEST FOR RANGE TRADING : In contrast to the majors and commodity block currencies, which can offer traders some of the strongest and longest trending opportunities, currency crosses often present the best range-bound trades. Crosses are simply combinations of majors and commodity currencies that do not have the U.S. dollar as part of the pairing. There are more than 18 combinations of major and commodity crosses, but some of the most actively traded include the following pairs :

1- EUR/JPY—one of the most active pairings in the currency world, as it is the primary hedging instrument for the massive amount of trade between Europe and Asia.
2- GBP/JPY—a very active cross among carry trade speculators because of the wide interest rate differentials that have developed between the UK and Japan since the beginning of the millennium.
3- AUD/JPY—yet another widely traded carry-based cross that often at-tracts flows from Japanese pensioners seeking income from much higher-yielding Australian bonds.
4- EUR/GBP—a very active cross that reflects trade flows and economic performance disparities between the UK and the euro zone.
5- EUR/CHF—a more muted cross that often trades on economic and political differentials between the two regions.
6- CAD/JPY—one of the purest ways to express an opinion on oil in the currency market, as Canada is the primary beneficiary of high oil prices in the industrialized world while Japan is the greatest victim.

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