http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/http://www.fxstreet.com/technical/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2009-01-12.htmlIn our original article we advocated an overall long position in the Australian Dollar against its New Zealand counterpart. We also felt that a short-term southward bias would ensue once the pair reached the 1.2260 level. The expected corrective pullback has, however, come into fruition sooner than anticipated and has caused the pair to break through upward channel support. This may be a false breakout as our fundamental bias continues favors the upside. The current developments now offer us aMon, 12 Jan 2009 06:28:06 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2009-01-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2009-01-09.htmlThe beginning of October saw the Australian Dollar bullishly rebound from the kiwi’s buying spree. As the RBNZ aggressively slashed interest rates in an effort to pad its three consecutive quarters of negative growth, traders began selling the isle-nation’s currency. RBA officials too drastically cut overnight rates on fears that the slowing global economy would soon hit home. However, Australia has thus far been able to stay afloat as no quarterly period has been subject to negative growth.Fri, 09 Jan 2009 06:16:35 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2009-01-09.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-31.htmlNew Zealand Dollar weakness has been of notorious mention since the RBNZ became yet another participant in the global trend towards rate slashing policies. In fact, the pair has plummeted 29.47% from its high in March. For the foreseeable future such a trend does not seem as though it will dwindle, especially on the backs of the Reserve Bank. With Q3 growth coming in negatively for the third consecutive period, Bollard and his board members may be forced to dwindle the substantial 475bp yieldWed, 31 Dec 2008 06:04:29 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-31.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-26.htmlThe beginning of October saw the Australian Dollar bullishly rebound from the kiwi’s buying spree. As the RBNZ aggressively slashed interest rates in an effort to pad its three consecutive quarters of negative growth, traders began selling the isle-nation’s currency. RBA officials too drastically cut overnight rates on fears that the slowing global economy would soon hit home. However, Australia has thus far been able to stay afloat as no quarterly period has been subject to negative growth.Fri, 26 Dec 2008 06:28:28 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-26.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-18.htmlYen strength has been nothing new, especially against the British Pound. GBPJPY has fallen by as much as 38.72% since July. Sterling sentiment reached a low point at the end of last week as the pair hit a 13-year low after risk-averse investors fled on news that the U.S. Senate had rejected the automaker bailout plan. Such volatility leads one to wonder if the trend will continue to unfold. With the Bank of England in firm position to do whatever necessary to abate the financial storm theThu, 18 Dec 2008 06:45:00 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-18.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-11.htmlSince early October both the central banks of the Euro-Zone and the U.K. have aggressively cut interest rates. Mervyn King at the Bank of England, however, has seen himself take a more proactive approach. By slashing rates by an unprecedented 300 basis points during the period, the Bank of England finds its target 50bp lower than that of the European Central Bank’s. The reversed course in interest rate strength now favors that of Trichet and his central bank. With expectations that the isleThu, 11 Dec 2008 07:36:58 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-11.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-04.htmlThe Japanese Yen has gained 27.3% against the Euro to date this year as risk aversion saw capital flee from carry trades. This has forged a powerful relationship between EURJPY and the MSCI Index of world stock performance, with the correlation currently standing at a hefty 95%. While this has produced a powerful downtrend in the pair, forex traders may see the Japanese Yen lose ground as seasonal forces take hold of the financial markets. Specifically, stock traders often deliberately closeThu, 04 Dec 2008 06:38:30 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-12-04.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-21.htmlIt is no surprise that the New Zealand Dollar continues to slide against its U.S. counterpart as RBNZ members have slashed rates by 175bp over the course of its last three consecutive meetings. The latter meeting alone saw an unprecedented 100bp cut. Following the decision came a 12.5% loss in the kiwi in the three days following the decision. With the current overnight cash rate at 6.50% the bank has substantial enough room for further action. The U.S. on the other hand has the benchmarkFri, 21 Nov 2008 07:28:37 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-21.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-13.htmlSince early October the Bank of England has shown little shyness in its pursuit to ease liquidity concerns; it has cut its benchmark interest rate by 200bp over the course of the four weeks ending November 6. In its Quarterly Inflation Report, the bank revised its growth and inflation forecasts substantially lower. Meanwhile, the Bank of Japan has been limited to a single rate cut of a magnitude 20bp. With such an outlook showing little optimism for the UK economy, Mervyn King has been forcedThu, 13 Nov 2008 07:59:12 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-13.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-10.htmlSince the collapse of Lehman Brothers in mid-September, risk sentiment has driven investors away from risky assets and into U.S. Dollar denominated money markets. As such, Dollar demand enjoyed sharp upside moves as overnight interest rates exhibited uncomfortable highs. However, over the past seven days these rates have fallen dramatically. Aggressive liquidity-boosting measures by the world’s top central banks have thus far paid off. Price action since has seen greenback demand give up someMon, 10 Nov 2008 08:41:47 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-11-10.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-10-14.htmlAfter reaching a four month high in July, the Pound began to plummet as traders commenced the overall Dollar buying spree. With signs of life giving some optimism to those long the Sterling in mid-September, the dreams of resurgence were quickly dashed. Greenback buyers hoarded their beloved North American currency as legislative rescue talks began to murmur in the halls of congress and in the financial press. With the Dollar becoming a safe-haven currency for those seeking the protection ofTue, 14 Oct 2008 08:08:32 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-10-14.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-25.htmlThe Canadian dollar may benefit as investor confidence sours in British and European markets. It is clear that Britain may no longer claim that it has been able to avoid the US-led downturn. Indeed, economic growth stalled in the second quarter with GDP coming in at 0.0%. Monetary easing is soon to follow, with traders pricing in 50-75bp worth of cuts over the next 12 months. Recent rhetoric from the Bank of England has been supportive as policymakers openly stated that there is a “risk thatMon, 25 Aug 2008 06:15:12 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-25.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-09.htmlAfter a 9-month decline in 2007, USDCAD has seen itself come back from a low that nearly broke the .90 mark. The remarkable 10-month rebound came on fears that the slowing US economy would bring Canada’s export driven growth to a halt. But now a new reason to rejoice in the Dollar bull-run has priced its way into the Dollar-Loonie pair. As the end of Fed interest rate cuts began being forecasted only one alternative to FOMC policy became plausible – rate increases. Now, with GDP revisionsTue, 09 Sep 2008 11:08:42 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-09.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-11.htmlIn our original posting we proposed the idea of entering a short-hedge at 1.0790 (61.8% Fib resistance) for those who are seeking to enter long at a more favorable price or for those already holding a long position. USDCAD has moved closer to our limit-entry by about 52 pips since then. Momentum may push the pair upwards towards resistance by the end of the week on the release of the University of Michigan Confidence Index. A third straight increase in the metric may come as declining fuelThu, 11 Sep 2008 06:34:45 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-11.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-12.htmlIn our original posting  we proposed the idea of entering a short-hedge at 1.0790 (61.8% Fib resistance) for those who are seeking to enter long at a more favorable price or for those already holding a long position. USDCAD triggered our entry order as it hit the identified resistance levels and is now on its way down towards the target of 1.0454 (50.0% Fib support). The fall may not be as smooth as we’d like it to be as Friday will see the release of the University of Michigan ConsumerFri, 12 Sep 2008 06:56:35 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-23.v03.htmlIn our original posting we proposed the idea of entering a short-hedge at 1.0790 (61.8% Fib resistance) for those who are seeking to enter long at a more favorable price or for those already holding a long position. After triggering our short entry order at the identified resistance level, USDCAD hit our liquidation target at 1.0454 (50.0% Fib support).Tue, 23 Sep 2008 13:44:38 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-09-23.v03.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-18.htmlThe Euro has been steadily declining against the Lira since mid-April as Turkey’s monetary authorities issued three consecutive interest rate increases to bring borrowing costs to a hefty 16.75%. Deteriorating economic conditions in Euro-Zone fundamentals have only fueled the selloff. Most recently, last week saw EZ Gross Domestic Product numbers come in at a dismal -0.2 percent, the first negative posting in the history of the 15-member bloc. Meanwhile, consumer prices surprised to theMon, 18 Aug 2008 08:49:07 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-18.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-12.htmlPossibly the only country other than the UK forecasting a worse fate for its domestic economy is New Zealand. Thursday’s jobs report continued to provide evidence of a pessimistic future for the South Pacific economy as their unemployment rate rose for the 2nd straight quarter to 3.9 percent from 3.4 percent at the end of 2007. On the contrary the UK’s unemployment rate has been relatively stable through the same period, remaining at 5.20% with only one uptick to 5.30% in April. Reserve BankTue, 12 Aug 2008 06:23:25 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-01.htmlSince the end of February the Kiwi has fallen nearly 1000 pips against the Yen as US guided risk aversion led to the unwinding of the carry trade. But just as the markets look to be finding solid footing, an unsuspecting new villain may further continue driving the Kiwi lower – Reserve Bank of New Zealand Chairman Alan Bollard. With his explicit call for further rate cuts by year’s end, Bollard has dashed hopes of a Kiwi comeback. In fact, some estimates go so far as to call for an additionalFri, 01 Aug 2008 10:37:55 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-08-01.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-23.htmlRecent BoJ minutes for June revealed a decreased concern over inflation among some of the board members of the committee. Such sentiment will likely increase considering Japan’s underlying economy is unlike “some economies with vigorous demand and strong upward pressure on wages” as stated in the BoJ minutes. On the contrary, European inflation has increased to a record 4.0% leaving the ECB with no choice but to hold a hawkish bias. Furthermore, strengthening equity markets in both the US andWed, 23 Jul 2008 06:14:49 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-23.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-18.htmlInflation worries in Singapore have dominated investor interest as the cost of living has risen a whopping 8.5% over the course of the past 12 months. To mitigate this rise, the Monetary Authority of Singapore (MAS) has been implementing an explicit strong SGD policy. During this same inflationary period, the Fed has been cutting rates aggressively to fight the onslaught of the housing crisis. Albeit US inflation is on the rise, traders are reluctant to price in a rate hike any time soon. SuchFri, 18 Jul 2008 06:27:22 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-18.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-09.htmlGlobal risk aversion drove AUDCHF to sell off in late October as traders flocked to dump carry trades. This downtrend continues as Australia’s economy suffers under the weight of record high interest rates following 12 consecutive RBA hikes to curb the fastest-growing inflation in nearly two decades. Consumer Confidence has declined to the lowest in 16 years, while Business Confidence now rivals lows unseen since September 2001. Equity markets have reflected the souring conditions withWed, 09 Jul 2008 05:56:16 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-09.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-03.htmlHistorically, oil prices have moved in lock-step with the Canadian dollar. However, the relationship has seen a sharp divergence in recent months as the CAD failed to capitalize on the rally in crude prices because of the fallout from US slowdown on the Canadian economy. With nearly 80% of exports headed to the US, the fate of Canada’s economy is irrevocably locked to that of its Southern neighbor. Meanwhile, the Pound has seen a return to strength as the growing concern over inflationaryThu, 03 Jul 2008 05:56:28 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-07-03.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-26.htmlWith RBNZ Governor Allan Bollard stating for the first time since 2003 that a rate cut is in the cards for the end of the year while the Reserve Bank of Australia is sure to keep rates on hold to tame inflation, it is not surprising that the Australian Dollar has rallied decisively against its New Zealand counterpart. Thursday’s New Zealand GDP release for Q1 is expected to come in negative for the first time since 2005, further cementing the need for monetary easing. While Australia too hasThu, 26 Jun 2008 08:35:01 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-26.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-20.htmlInflation worries have kept the European Central Bank hawkish, with President Jean-Claude Trichet hinting that a rate hike may imminent in the near term. Executive Board member Lorenzo Bini Smaghi echoed the sentiment, saying that a quarter-point hike should be enough to bring Euro Zone inflation back below the target 2%. Meanwhile, minutes released from the Bank of Japan’s policy meetings in April and May further cemented the bank’s neutral stance as they balance competing forces from globalFri, 20 Jun 2008 09:07:16 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-20.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-13.htmlThe Swiss Franc has been trending higher against the Yen since late November of 2000. With both CHF and JPY traditionally used as funding currencies for carry trades when paired with other currencies, their relationship among themselves has been primarily driven by the slightly higher yield offered by the SNB versus the BOJ. With both monetary authorities now firmly on hold, there is little reason to believe the underlying conditions guiding the pair’s broad direction will change in the nearFri, 13 Jun 2008 05:54:05 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-13.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-06.htmlAs anti-dollar sentiment reached its peak mid-March, the Swiss Franc overcame parity with the US dollar to reach a historic low at 0.9644. The franc derived additional strength from its status as a safe-haven currency, gaining additional momentum as the dollar sell-off intermingled with intense bouts of risk aversion. As it became increasingly clear that Europe and Asia would not decouple from US slowdown towards the end of the first quarter, the greenback began a slow retracement from theFri, 06 Jun 2008 12:14:58 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-06-06.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-15.htmlAs the worse of risk aversion abated, USDJPY began to lift from March lows at 91.71 to enter into what is now a nearly 2-month long uptrend. Price action had been guided by an upward sloping trend line, a support that has recently been broken as USDJPY settled into consolidation between the 38.2% and 50% Fibonacci retracements of the 12/27/07-03/17 decline at 102.91 and 105.17, respectively. The first test of Fib resistance failed and allowed Yen bulls to push USDJPY through trend line supportThu, 15 May 2008 07:40:06 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-15.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-09.htmlThe Pound has been gradually declining against the US dollar along a well-defined downward-sloping channel since mid-March. The latest price action sees the pair at the bottom of this channel, with the coming days sure to bring volatility as the Bank of England readies an interest rate announcement. The decision will be closely watched as policy makers are torn between offering monetary stimulus to contain fallout from the floundering UK housing market and battling commodities-fueledFri, 09 May 2008 05:52:46 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-09.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-01.htmlThe Swiss Franc has historically served as a standby safe haven asset in times of financial and political uncertainty. It is understandable then that as the subprime fiasco and the credit crunch gripped the markets, the USDCHF pairing collapsed downward. Attractive Swiss fundamentals favored the trade as the mountain nation seemed insulated from US turmoil by its relatively modest trade links with the beleaguered superpower. However, it became clear into the first quarter of this year that notThu, 01 May 2008 12:58:38 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-05-01.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-25.htmlThe EURUSD has been rising steadily this year, with a souring in Euro Zone data insufficient to halt the pair as momentum was determined to reach the historic 1.60 level. With a weak test and a failure to close above 1.60, the Euro bulls’ resolve faltered as the pair breached past the trend line that has dominated price action since early February. A trend change looks to be unfolding as markets settle from the euphoria of the rally and traders begin to re-evaluate underlying fundamentals. AFri, 25 Apr 2008 06:36:47 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-25.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-17.htmlThe upward trajectory in the Australian Dollar has been guided by a trend line established in August of last year. The pair is driven higher by a widening yield differential between the two countries, with the RBA moving to contain inflation with record-high borrowing costs at 7.25% all the while the US Fed pushes on with rate cuts. The Australian economy has begun to slow under weight of hefty monetary tightening, but there are no signs that the RBA will pursue easing in the near term. ThisThu, 17 Apr 2008 06:49:32 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-17.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-11.htmlWe had previously noted that though AUDCAD offered a rare interest rate arbitrage opportunity with the Bank of Canada following the Fed in cutting borrowing costs and the RBA firmly on hold at 7.25%, conditions had soured as traders begin to entertain the hope that the US has seen the worst of the current housing crisis. Positive sentiment echoed across markets as Canada’s benchmark stock index rose to a monthly high and the yield on the two-year Canadian government bond reached a two-monthFri, 11 Apr 2008 06:18:41 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-11.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-04.htmlThrough the first quarter of the year, AUDCAD offered a rare interest rate arbitrage opportunity in today’s volatile market place. With the BOC following the Fed in cutting borrowing costs and the RBA firmly on hold at 7.25%, long positions were able to benefit from an increasingly favorable interest rate differential. Conditions have soured however, as traders begin to entertain the hope that the US has seen the worst of the current housing crisis. The US is Canada’s chief trading partner,Fri, 04 Apr 2008 11:22:32 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-04-04.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-26.htmlHaving put in a double top at the 0.9500 level, the AUDUSD retraced back to support at the upward sloping trend-line established on 08/16/2007. The pair started the week showing a Morning Star candlestick reversal pattern at support, suggesting the retracement is over and the bullish run is set to resume. However, the ascent has paused as price action encountered a downward sloping resistance line at 0.9170. Looking closer at the 4-hour chart, we notice the downward-sloping resistance lineWed, 26 Mar 2008 06:25:48 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-26.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-13.htmlVolatility attached to risk sentiment has picked up substantially over the past few weeks. For the high-yielding AUDUSD, the rise in uncertainty has led to a correction from its record breaking, long-term rally. Two weeks ago, the Australian dollar managed to push through resistance at 0.94 and in doing so set a new 23-year high. However, momentum quickly flagged after the pair met its next psychological level at 0.95. A subsequent 350-point correction from this historical level unseated theThu, 13 Mar 2008 07:04:56 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-13.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-06.htmlThe GBPJPY is once again a top candidate for a short-term hedge position to protect profitable trades behind the long-term, dominate trend from small, counter-trend moves that have developed over the past few days. Once again, risk appetite is having its influence over price action; but this time around, moderate fundamentals may be playing a hand in the burgeoning rebound. The nearly 350-point rebound in the pair this time around seems to have been triggered by a weak, fourth quarter capitalThu, 06 Mar 2008 06:14:58 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-03-06.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-28.htmlThe fight between risk aversion and risk appetite over the past 48 hours, triggered by milestone lows in the world’s most liquid currency and fears of a possible recession in the largest economy, have had a particularly fierce impact the yen and swiss denominated pairs. The unnerved markets have also threatened to force a breakout in the already volatile GBJPY. Before the winds of risk began to pick up, GBJPY was already looking a potentially momentous breakout as a long term falling trendThu, 28 Feb 2008 06:09:07 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-28.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-21.htmlThere is a clear counter-trend move developing in the GBPUSD. After four consecutive days of declines, the pair is now at a point of support found on the double touch of a previous swing low whose low was set at 1.9335. Technicals beyond this double touch are light, with only an internal trendline reinforcing this floor. In contrast, the long-term bear trend channel from the November 9th swing high remains intact - even after the swing high over the past two weeks. Long-term sterling bears (orThu, 21 Feb 2008 06:13:56 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-21.htmlhttp://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-14.htmlBad news seems commonplace for the US dollar; and traders appear to have grown numb to the battery of fading economic trends. At the same time, this hasn’t led the greenback to mark strong rallies on every better-than-expected release, but it has offered some stability for the majors – as well as a number of definable ranges. For USDCAD, the congestion has a slope in the form of a rising trend channel that has developed since the pair drained off some of the volatility seen in its sharpThu, 14 Feb 2008 06:17:27 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/hedging-range-trades/2008-02-14.html