§ Currency Pair: EUR/GBP
§ Entry Zone: Go both long and short at the market if the price is at any level within the 0.6870-0.6750 range
§ Protective Stop: Long stop below 0.6668 and short stop above 0.6961
§ Profit Target: Long Target at 0.6870 and Short Target at 0.6750
§ Profit Potential: 120 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 EUR/GBP 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 - Currencies that are Ranging
Currency
% ATR Rank
Stop for Long
Hedging Zone
Stop for Short
Profit Range
EURCHF
|||||| 0.35%
1.6395
1.6505
1.6600
1.6705
95 pips
EURGBP
||||||||| 0.45%
0.6668
0.6750
0.6870
0.6961
120 pips
GBPCHF
|||||||||||| 0.50%
2.4050
2.4268
2.4450
2.4600
182 pips
EURUSD
|||||||||||| 0.52%
1.3285
1.3385
1.3475
1.3575
90 pips
GBPUSD
||||||||||||| 0.56%
1.9589
1.9735
1.9898
1.9997
163 pips
[B]Medium Risk Hedging Opportunities - Currencies that are Volatile[/B]
[B]Currency[/B]
[B]% ATR Rank[/B]
[B]Stop for Long[/B]
[B]Hedging Zone[/B]
[B]Stop for Short[/B]
[B]Profit[/B][B] Range[/B][B][/B]
EURAUD
|||||||||||| 0.65%
1.5995
1.6200
1.6400
1.6605
200 pips
USDCAD
||||||||||||| 0.66%
1.0495
1.0600
1.0700
1.0805
100 pips
AUDUSD
||||||||||||| 0.70%
0.8068
0.8168
0.8357
0.8457
189 pips
CHFJPY
||||||||||||| 0.71%
97.82
98.82
99.61
100.61
79 pips
USDCHF
||||||||||||| 0.72%
1.1920
1.2221
1.2328
1.2555
107 pips
[B]High Risk Hedging Opportunities - Currencies that are Trending[/B]
[B]Currency[/B]
[B]% ATR Rank[/B]
[B]Stop for Long[/B]
[B]Hedging Zone[/B]
[B]Stop for Short[/B]
[B]Profit[/B][B] Range[/B][B][/B]
EURJPY
|||||||||||||| 0.75%
159.61
162.40
164.00
165.00
160 pips
USDJPY
||||||||||||||| 0.77%
119.53
120.53
122.13
123.13
160 pips
GBPJPY
||||||||||||||||| 0.88%
238.50
240.00
241.50
243.00
150 pips
AUDJPY
|||||||||||||||||| 0.91%
99.50
100.50
101.50
102.50
100 pips
NZDUSD
||||||||||||||||||| 0.97%
0.7150
0.7250
0.7450
0.7550
200 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 Average True Range, the Less Risky the Currency is for Hedging.
For more information on FXCM hedging strategies please visit http://www.fxcm.com/hedging.jsp