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- Monday, 12 October 2009 21:51:52 GMT Traders Leaning on the Dollar as its Dominance Continues to Falter (Forex Video)
- Monday, 12 October 2009 14:50:59 GMT Forex Strategy Outlook: US Dollar Range Likely to Hold on Low Volatility
§
Currency Pair: USDCAD
§
Entry Zone: Go both long and short at the
market if the price is at any level within the 1.0663 – 1.0756
range
§
Protective Stop: Long stop below 1.0548 and short
stop above
1.0834
§
Profit Target: Long Target at 1.0756 and Short
Target at 1.0663
§ Profit Potential: 93 pips ( excluding transaction costs and slippage )
The most effective way to capitalize on currencies pairs that are trapped in tight ranges is through the use of hedging. The hedging feature is currently available on all accounts using FXCM’s No Dealing Desk service. For more information on FXCM hedging strategies please visit http://www.fxcm.com/hedging.jsp
The USDCAD is our primary target for hedging in the week ahead, with clear range-bound trade and concrete support and resistance levels. To hedge, go both long and short at the market if price stays within the above Hedging Zone. Take profits at R1 for longs and at S1 for shorts, covering losses above R2 or below S2.
More Low Risk Hedging
Opportunities Currency %
ATR Rank Stop
for Long Hedging
Zone Stop
for Short EURCHF ||||||
0.35% 1.6410 1.6462 1.6613 1.6750 151
pips EURGBP |||||||||
0.44% 0.6670 0.6725 0.6810 0.6870 85
pips GBPCHF ||||||||||||
0.50% 2.4000 2.4450 2.4750 2.4950 300
pips EURUSD ||||||||||||
0.51% 1.3100 1.3300 1.3450 1.3650 150
pips USDCAD |||||||||||||
0.60% 1.0548 1.0663 1.0756 1.0834 93
pips Medium Risk Hedging
Opportunities Currency %
ATR Rank Stop
for Long Hedging
Zone Stop
for Short EURAUD ||||||||||||
0.65% 1.5500 1.5750 1.6100 1.6250 350
pips GBPUSD |||||||||||||
0.66% 1.9400 1.9675 2.0000 2.0135 325
pips AUDUSD |||||||||||||
0.70% 0.8235 0.8332 0.8475 0.8575 143
pips CHFJPY |||||||||||||
0.71% 95.00 97.50 100.00 102.50 250
pips USDCHF |||||||||||||
0.72% 1.2075 1.2250 1.2500 1.2650 250
pips High Risk Hedging
Opportunities Currency %
ATR Rank Stop
for Long Hedging
Zone Stop
for Short EURJPY ||||||||||||||
0.75% 161.95 164.00 166.00 168.05 200
pips USDJPY |||||||||||||||
0.77% 120.50 122.00 123.75 125.05 175
pips GBPJPY |||||||||||||||||
0.88% 237.95 243.00 246.50 250.05 350
pips AUDJPY ||||||||||||||||||
0.91% 100.95 102.00 105.00 107.05 300
pips NZDUSD |||||||||||||||||||
0.97% 0.7150 0.7500 0.7637 0.7737 137
pips NZDJPY |||||||||||||||||||||
1.22% 88.95 92.00 95.00 97.00 300
pips
Rules for the Hedging
Radar
1)
Entry Zone -> Go both long and short at the
market if the currency is at any level within the Hedging Zone.
2)
Profit Taking ->Target for the long order is the
top of the entry zone, for the short order is the bottom of the entry
zone.
3)
Stop Levels are Key Support and Resistance Points
-> Place the actual
stops a few pips above the higher level and a few pips below the lower level.
The break of these levels signals that the ranges have been broken and the
hedging strategy should no longer be implemented.
4)
The lower the
**How
is the % ATR Rank Calculated?
The average true
range is the 90 days moving average of the currency’s true range. The true range
is the greatest of: the difference between the current high and the current low;
the difference between the current high and the previous close or the difference
between the current low and the previous close.
The %ATR is the
relative value of the ATR when weighted against the price. For example, if the
ATR for the EURGBP is 26 pips then the %ATR is 0.4 percent since 0.0026/0.6602 =
0.4% where 0.6602 is the quoted price of the EURGBP.
For more information on FXCM hedging
strategies please visit http://www.fxcm.com/hedging.jsp
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