Why USD-Based Pairs Can Be Choppy
Because most forex trades involve the U.S. dollar, news from the U.S. tends to cause big reactions in the market—even if the news isn’t all that significant in the long run.
That means when U.S. data is released (like employment reports, inflation numbers, or Fed updates), you’ll often see sudden price spikes in USD pairs such as EUR/USD or USD/JPY.
These spikes can make it harder to spot clean trends or solid trading ranges. Even if a trend is forming, those unpredictable jumps can throw you off.
Major Pairs vs. Currency Crosses
Let’s compare two charts:
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EUR/USD: Because it includes the U.S. dollar, the chart can look messy, with erratic movements caused by frequent U.S. economic news.
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EUR/JPY: Since this pair doesn’t involve the dollar, the price action is often smoother and less volatile—making it easier to trade.
In fact, during the same time period, both EUR/USD and EUR/JPY showed the euro strengthening. But EUR/JPY had a cleaner upward trend, while EUR/USD was more choppy.
One trader even bagged 100 pips riding the EUR/JPY trend—proof that currency crosses can offer clearer opportunities.
Why Trend Traders Love Crosses
If you're someone who likes to follow trends, currency crosses might suit you better than the majors.
Because they’re not constantly shaken up by U.S. headlines, their trends often hold stronger, and technical levels like support and resistance are more reliable.
This can give you more confidence in your entries and exits.
Up Next: Earning from Interest Rate Differentials
And here’s the icing on the cake…
In the next section, we’ll show you how trading currency crosses can also help you take advantage of interest rate differences between countries—a strategy that can give your trades an extra edge.