The most effective way to capitalize on currencies pairs that are trapped in tight ranges is through the use of hedging.
[B]Currency Pair: [/B]EURGBP
[B]Entry Zone:[/B] Go both long and short at the market if the price is at any level within the 0.6671-0.6867 range
[B]Protective Stop:[/B] Long stop below 0.6537 and short stop above 0.7020
[B]Profit Target:[/B] Long Target at 0.6867 and Short Target at 0.6671
[B]Profit Potential:[/B] 196 pips (excluding transaction costs and slippage)
<SPAN style=“FONT-SIZE: 9pt; FONT-FAMILY: Arial; mso-fareast-font-family: ‘Times New Roman’; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA”> [B]Hedging Pair of the Week[/B]
The EURGBP 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.
[B]More Hedging opportunities[/B]
[B]Entry Zon[/B][B]e [/B]-> Go both long and short at the market if [B]the currency is at any level within the Hedging Zone. [/B]
[B]Profit Taking -[/B]>Target for the long order is the [B]top of the entry zone[/B], for the short order is the [B]bottom of the entry zone[/B].
[B]Stop Levels are Key Support and Resistance Points [/B]-> 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.
The lower the Average True Range, the Less Risky the Currency is for Hedging.
[B]More Low Risk Hedging Opportunities[/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 |||||| 0.40% 1.5900 1.6200 1.6500 1.6800 300 pips EURGBP ||||||||| 0.42% 0.6537 0.6671 0.6867 0.7020 196 pips GBPCHF |||||||||||| 0.61% 2.3300 2.4055 2.4758 2.5400 703 pips [B]Medium Risk Hedging Opportunities[/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] EURUSD |||||||||||| 0.61% 1.3300 1.3500 1.3700 1.3900 200 pips CHFJPY |||||||||||| 0.78% 92.00 95.00 98.00 101.00 300 pips USDCAD ||||||||||||| 0.83% 1.0200 1.0400 1.0800 1.1000 400 pips
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 What Is A Hedge Ratio? - FXCM UK <I style=“mso-bidi-font-style: normal”>