§ Currency Pair: EUR/USD
§ Entry Zone: Go both long and short at the market if the price is at any level within the 1.3450-1.3550 range
§ Protective Stop: Long stop below 1.3390 and short stop above 1.3610
§ Profit Target: Long Target at 1.3550 and Short Target at 1.3450
§ Profit Potential: 100 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/USD 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.
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[B]More Low Risk Hedging Opportunities - Currencies that are Ranging[/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]
EURCHF
|||||| 0.35%
1.6400
1.6505
1.6600
1.6705
95 pips
EURGBP
||||||||| 0.46%
0.6668
0.6750
0.6870
0.6961
120 pips
GBPCHF
|||||||||||| 0.53%
2.4050
2.4268
2.4450
2.4600
182 pips
[B]EURUSD[/B]
[B]|||||||||||| 0.54%[/B]
[B]1.3390[/B]
[B]1.3450[/B]
[B]1.3550[/B]
[B]1.3610[/B]
[B]100 pips[/B]
EURAUD
|||||||||||| 0.65%
1.6209
1.6286
1.6443
1.6610
157 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]
USDCAD
||||||||||||| 0.66%
1.0750
1.0825
1.0888
1.0905
63 pips
GBPUSD
||||||||||||| 0.67%
1.9589
1.9746
2.0071
2.0131
325 pips
AUDUSD
||||||||||||| 0.70%
0.8095
0.8168
0.8357
0.8390
189 pips
CHFJPY
||||||||||||| 0.71%
98.34
98.82
99.14
99.32
32 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%
118.97
120.53
122.00
122.50
147 pips
GBPJPY
||||||||||||||||| 0.88%
238.50
240.00
241.50
243.00
150 pips
AUDJPY
|||||||||||||||||| 0.91%
98.50
99.50
100.50
101.50
100 pips
NZDUSD
||||||||||||||||||| 0.97%
0.7186
0.7249
0.7330
0.7403
81 pips
NZDJPY
||||||||||||||||||||| 1.22%
85.79
86.70
89.01
91.00
231 pips
Rules for the Hedging Radar
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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
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