Currency Trading Signals Point to Trends in Euro and other Major Currencies
Thu, Aug 07 2008 10:33 AM ESTCurrency trading markets are primed for trend trading through the medium term, as the vast majority of forex pairs are in the midst of extended medium-term price trends. Of the 18 currency pairs we cover for this report, 14 are in “Trend” territory, three are under “Range”, and only one (the Australian Dollar) is in “Breakout” ranges. Three major central bank decisions have come and gone, and currency options traders are now geared up for depressed forex volatility through the short term. We will favor trading strategies that do best in trending currency markets, placing less weight on Range trading and high-volatility breakout trades.
Preferred Strategies
Our medium term trading bias has shifted in favor of a clear market trending bias, and we will pay close attention to FXCM Speculative Sentiment Index trading signals—outperformers in prolonged currency price moves. A close second in this regard is Jamie Saettele’s “Picking Tops and Bottoms” report, which has been one of our most profitable strategies over its lifetime. A distant third is our “Pairs to Range Trade” report, which has been performing poorly as of late in relatively unfavorable market conditions.
Discretionary Strategy Outlook
