Don’t Ignore the Cross Currency Pairs When Trading Forex on MT5
Many forex traders focus solely on the US dollar and the currency majors, yet the cross-currency pairs often deliver better price action and stronger trends. In this video, we show you one example on the EUR/CAD.
Cross currency pairs—those without the US dollar—are often overlooked by forex traders. Majors like EUR/USD dominate attention. But ignoring crosses misses unique opportunities. These pairs reveal pure relational dynamics. On MT5, they trade seamlessly. Volume price analysis (VPA) confirms conviction in their moves.
Why Cross Pairs Offer Distinct Advantages
Cross pairs (e.g., EUR/GBP, GBP/JPY, AUD/NZD) show direct currency relationships:
- No USD Noise: Focus on specific drivers—ECB vs BoE for EUR/GBP, or risk sentiment for GBP/JPY.
- Unique Volatility: GBP/JPY (“the beast”) swings wildly on yen safe-haven flows. EUR/CHF reacts to SNB interventions.
- Relational Insight: Spot overbought/oversold without dollar interference.
Quantum currency matrix on MT5 highlights cross extremes. Strength indicator ranks them live.
Trading Crosses on MT5
MT5 supports all crosses with tight spreads. High liquidity in popular ones. Load Quantum tools for edge:
- Matrix for relational bias.
- Trend Monitor for direction.
- VPA confirmation—high volume on moves validates entries.
London session excels for European crosses. Asian for yen pairs.
Practical Examples
- EUR/GBP: Policy divergence creates trends. Low volume extremes = range plays.
- AUD/NZD: Commodity twins—mean reversion common.
- GBP/JPY: Risk sentiment gauge—sharp moves.
VPA spots conviction—high volume continuation = hold. Low volume spikes = traps.
Don’t Ignore Crosses
Majors are reliable. But crosses add diversity. They reveal sentiment others miss. Quantum tools make trading them reliable on MT5.
Anna Coulling’s VPA approach with Quantum indicators turns cross pairs into disciplined opportunities. Include them for fuller market view.
Don’t ignore cross currency pairs. Quantum on MT5 delivers relational edge. Trade smarter with VPA confirmation.
Exotic Currency Pairs: High Rewards, High Risks
Exotic currency pairs add excitement to forex trading. They involve one major currency (usually USD) and one from an emerging or smaller economy. Examples include USD/TRY (Turkish lira), USD/MXN (Mexican peso), EUR/ZAR (South African rand), or USD/SEK (Swedish krona). These pairs differ sharply from majors. Traders seek big moves—but with caution.
Characteristics of Exotic Pairs
Exotics feature:
- High Volatility: Sharp swings from political events, commodity prices, or capital flows.
- Wide Spreads: Lower liquidity means higher costs (5-20+ pips vs majors’ 0.5-1).
- Lower Volume: Less institutional participation—volume data less reliable for VPA.
- Event-Driven: News or policy shifts create spikes.
Quantum currency strength indicator ranks exotics live. But extremes often overextended.
Advantages for Traders
Experienced traders love exotics:
- Big Moves: Percentage gains larger than majors.
- Diversification: Unique drivers—e.g., oil for MXN, gold for ZAR.
- Carry Opportunities: High interest differentials (e.g., TRY).
VPA spots conviction—high volume on spikes validates momentum.
Disadvantages and Risks
Exotics aren’t beginner-friendly:
- Slippage and Gaps: Low liquidity causes poor fills.
- Manipulation Risk: Smaller markets more prone to intervention.
- High Costs: Wide spreads eat profits.
- Weekend Gaps: More common than majors.
VPA helps—low volume spikes warn of traps. But signals less clear than majors.
When to Trade Exotics
Leave for later. Master majors first. Use exotics for diversification once comfortable. Focus on news events for volatility. Quantum matrix shows relational extremes—trade with caution.
Exotic pairs offer rewards for prepared traders. High volatility demands discipline. VPA with Quantum tools adds edge—but majors safer for most.
Start with majors. Explore exotics cautiously. Quantum indicators make relational analysis reliable.
By Anna Coulling