Post Greenspan Hesitation and Opportunity
With the end of the Greenspan era, Forex traders now face a period of fundamental uncertainty. The Forex market is now on a tight rope that will vibrate with every economic release. This is not a bad set of circumstances because it will result in technical uncertainty, higher trading ranges and increased volatility in currency moves. It will mean more moments of opportunity to trade currency pairs in either direction.

An effective trading strategy in this environment is to play the frequent retracements that Currency prices have during any given day. The 60 minute time interval can provide wide enough ranges 60 pips or more and time to prepare an entry order with a high level of confidence. Let's look at some charts.

Those who were only looking at the EURUSD missed a nice fib formation in the GBPUSD.

The case is solid for being able to trade moments of opportunity while the fundamental picture hesitates. Next time you see that the markets are sideways, look a bit closer for many short term trades.
 
Who is Abe Cofnas?
Abe Cofnas has spent over a decade as an equity broker, futures trader, and technical analysis instructor. Abe was one of the first professional trainers in the world to provide web-based interactive training exclusively on Forex trading. Since 2001, Abe's Forex Trader column in Futures Magazine has been a mainstay of the publication, providing innovative observations and educational tips on Forex trading to a world readership of over 65,000 traders. You'll enjoy learning Forex from this master!