During the months of summer in the northern hemisphere, many traders are on vacation and trading tends to slow down and become more range bound. Not all currency pairs have the same behavior and characteristics. In general, crosses have a better chance of sticking to ranges, often narrower range than the majors or minors. However, not all crosses are the same. Here are a few things to watch out for. This is the third article in the serious about range trading. A previous one dealt with trading the range, but not going extreme. Since the outbreak of the financial crisis, currencies are generally split between the so called “safe haven” currencies and the “risk currencies”. The US dollar, Japanese yen and Swiss franc are sought in times of trouble – they are in the safe haven camp. However, the Swiss franc is effectively pegged to the euro. So for now, the franc is out of this camp. All the others are in the “risk” camp, and are bought when there is more confidence. This makes yen crosses less favorable for range trading. In too many cases of bad news, risk currencies such as the euro weaken against the dollar, while USD/JPY falls or remains stable. In such cases, yen crosses aren’t candidates for range trading. Old continent cross: A popular cross is EUR/GBP: the pound tends to move together with the euro against the dollar. Liquidity is high in EUR/GBP, and it usually sticks to ranges, even though the deepening of the debt crisis sent flows from the continent to London. Commodity camp: The Canadian, Australian and New Zealand dollars are often called “commodity currencies”, as these countries all export commodities. AUD/NZD is the first cross that comes to mind – the neighbors share a lot in common, and the cross trades in narrow ranges. However, these may be too narrow at times. AUD/CAD is a better candidate. It doesn’t always move in ranges, but when it does, these ranges are clear and relatively wide. Last but not least, we return to a major pair mentioned earlier: USD/JPY. While the yen often gains against the dollar in times of trouble, the threat of intervention by Japanese authorities to weaken their currency limits these moves. The end result is that the pair is range bound as well. Do you trade ranges? What pairs do you trade? Further reading: 5 Most Predictable Currency Pairs – Q3 2012 Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Basics & IndustryForex Basics share Read Next Forex Daily Outlook July 24 2012 Anat Dror 10 years During the months of summer in the northern hemisphere, many traders are on vacation and trading tends to slow down and become more range bound. Not all currency pairs have the same behavior and characteristics. In general, crosses have a better chance of sticking to ranges, often narrower range than the majors or minors. However, not all crosses are the same. Here are a few things to watch out for. This is the third article in the serious about range trading. A previous one dealt with trading the range, but not going extreme. Since the outbreak of the financial crisis,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.