Cross Pair Currency Trading Using Fundamental Analysis
Fundamental analysis, perhaps most already know whether it’s the fundamental analysis that we usually see through the economic calendar. Yes right, fundamental analysis is the technique of analyzing the price movements of a currency pair against the effects caused by a country’s economic fundamentals.
For example, when you find out that the Australian government has announced that its economic conditions are very strong, then you are not aware of the AUD / USD graph and if at that time the United States economy was in a very strong condition then it turned out that the AUD / currency trading chart was happening. USD is in sideways condition.
Well of course the sideways or flat movements will reduce the chances of getting profit. For that we can find currency cross pair so that the opportunity to get a profit will not be lost.
Because at that time the Japanese economy was in a weak condition with economic indicators out of expectation, you could use the AUD / JPY currency cross pair as a trading object and not AUD / USD.
Then you can open a AUD / JPY Long (BUY) order to get the maximum profit.
So this is because we say why we have to trade currency cross pair. Nothing else because we will still be able to increase the opportunity to get maximum profit, especially when there is a potential price driver such as a very strong fundamental factor.
So essentially when you trade using fundamental analysis, choose a currency that has stronger fundamentals compared to the pair’s currency. Because this will increase the opportunity to get maximum profit.