FX – Potential – Buy USD, HKD – Sell GBP, EUR

Below are buy and sell signals on currencies for potential use in your trading strategy. These currencies have traded outside their short-dated Bollinger Bands. A signal occurs

 when there is a move outside the band and then a move back through the band. Ideally, the bands will not be widening, meaning that volatility is not increasing.

Currency Signal Outside Level Band Level Price Now Profit Target
GBP / USD

SELL

1.6746

1.6645

1.6642

1.6395

GBP / HKD

SELL

13.0050

12.9500

12.9296

12.7450

GBP / CAD

SELL

1.5870

1.5808

1.5811

1.5695

EUR / USD

SELL

1.4882

1.4791

1.4840

1.4498

EUR / HKD

SELL

11.5576

11.4590

11.5303

11.2650

EUR / CAD

SELL

1.4102

1.4075

1.4102

1.3865

USD / NOK

BUY

5.2350

5.2510

5.2450

5.3850

USD / DKK

BUY

5.0089

5.0385

5.0249

5.1450

 

The readings are taken from a daily chart. The “outside level” is the daily high (for Sells) or low (for Buys). The “profit target” is the simple moving average.

 The signal occurs when the currency moves back through the band level in the direction of the potential trade. The Bollinger Bands are at 2 standard deviations.

All of the currencies highlighted in the table are available for trading on the CMC Markets platform.

For an example and explanation of this method please see the post at: http://blog.cmcmarkets.com.au/2011/04/14/fx-potential-buys-and-sells-%e2%80%93-method/

About michaelmccarthycmc

Chief Market Strategist - CMC Markets and Stockbroking Regular on ABC, BBC, Bloomberg, Channel TEN, CNBC, SBS and SKY
This entry was posted in Forex, Market, Trading and tagged , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s