A sensor and fabrication process are provided for forming reference layers with substantially orthogonal magnetization directions having zero offset with a small compensation angle. An exemplary embodiment includes a sensor layer stack of a magnetoresistive thin-film based magnetic field sensor, the sensor layer stack comprising a pinning layer; a pinned layer including a layer of amorphous material over the pinning layer, and a first layer of crystalline material over the layer of amorphous material; a nonmagnetic coupling layer over the pinned layer; a fixed layer over the nonmagnetic coupling layer; a tunnel barrier over the fixed layer; and a sense layer over the nonmagnetic intermediate layer. Another embodiment includes a sensor layer stack where a pinned layer including two crystalline layers separated by a amorphous layer.