Why Currency Crosses Matter—Even If You Only Trade the Majors
Even if you prefer to stick with major currency pairs like EUR/USD or GBP/USD, currency crosses can still help you make smarter trading decisions.
Example: EUR/USD vs. GBP/USD – Which One Should You Buy?
Let’s say both EUR/USD and GBP/USD are showing buy signals, but you can only pick one trade.
How do you choose?
Flipping a coin won’t cut it. 🪙
Instead, take a look at the EUR/GBP cross.
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If EUR/GBP is falling, that means GBP is stronger than EUR.
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In that case, buying GBP/USD would likely give you more profit than buying EUR/USD.
Why?
Because if the USD weakens, GBP (the stronger currency) is more likely to rally harder than EUR.
👉 More pips, better trade.
Using Crosses to Analyze Relative Strength
You can apply this same logic to any major pair to find which currency is stronger or weaker.
Here’s a quick guide:
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Can’t decide between buying EUR/USD or selling USD/CHF? → Check EUR/CHF
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Torn between USD/CHF or USD/JPY? → Look at CHF/JPY
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Unsure about EUR/USD or USD/JPY? → Watch EUR/JPY
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Stuck between GBP/USD or USD/CHF? → Check GBP/CHF
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Not sure if you should go with GBP/USD or USD/JPY? → Look at GBP/JPY
By analyzing cross pairs, you can get a clearer picture of relative strength between currencies and choose the trade with the higher potential.