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.

Here we see a Fibonacci price action shaping up on the EURUSD.

A quick scan of the USDJPY pair on the 30 min pattern shows another fib based trade evolving to meet a standard 20 pip goal.

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.