{"id":14501,"date":"2012-10-18T00:19:31","date_gmt":"2012-10-18T07:19:31","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=14501"},"modified":"2012-10-18T00:19:31","modified_gmt":"2012-10-18T07:19:31","slug":"best-currency-setups-to-start-the-fourth-quarter","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/10\/18\/best-currency-setups-to-start-the-fourth-quarter\/","title":{"rendered":"The Best Currency Setups to Start the Fourth Quarter"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 1, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/896411-the-best-currency-setups-to-start-q4\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>The major paper currencies have an on-going problem &#8211; many of the financial authorities in charge of preserving their &#8220;value&#8221; are actively trying to drive that value downward, jawboning for a decline, and\/or wishing beyond hope for a decline. Currencies are an active component of economic recovery programs and likely will remain so until the global economy returns to trend growth. As a result, very few trends have emerged in the major currencies since the financial crisis as traders have bounced from one momentary theme to the next.<\/p>\n<p>{snip}<\/p>\n<p>Here are the trends using representative currency pairs &#8211; the solid black lines define the overall trend from late 2008.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14507\" aria-describedby=\"caption-attachment-14507\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY-lt.png\" alt=\"The Japanese yen has show relentless strength\" title=\"The Japanese yen has show relentless strength\" width=\"500\" height=\"350\" class=\"size-full wp-image-14507\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14507\" class=\"wp-caption-text\">The Japanese yen has show relentless strength<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14508\" aria-describedby=\"caption-attachment-14508\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF-lt.png\" alt=\"The franc&#039;s trend was accelerating until the SNB stepped in with a floor\" title=\"The franc&#039;s trend was accelerating until the SNB stepped in with a floor\" width=\"500\" height=\"350\" class=\"size-full wp-image-14508\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14508\" class=\"wp-caption-text\">The franc&#039;s trend was accelerating until the SNB stepped in with a floor<\/figcaption><\/figure><br \/>\n<strong>Source for these and all other charts except where otherwise noted: <a href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>This landscape produces a lot of landmines for currency traders looking for reasons to maintain bullish positions on any currency. I provide this backdrop as a reminder that almost no emerging trend in currencies can be expected to last beyond the short-term. On the other side of every long idea is a central bank and\/or other assorted authorities who are actively interested in working against that long. In other words, the clock is ticking on almost every trade. Thus, my currency setups to start the fourth quarter must be interpreted as plays for &#8220;right now&#8221;; most are not long-range forecasts or extended projections.<\/p>\n<p>{snip} The U.S. dollar is a great example of the trendless meandering of most major currencies against each other.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14510\" aria-describedby=\"caption-attachment-14510\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DXY0-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DXY0-lt.png\" alt=\"The U.S. dollar has essentially gone nowhere for over four years\" title=\"The U.S. dollar has essentially gone nowhere for over four years\" width=\"500\" height=\"350\" class=\"size-full wp-image-14510\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DXY0-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DXY0-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14510\" class=\"wp-caption-text\">The U.S. dollar has essentially gone nowhere for over four years<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The trade-weighted index has also bounced around without trend with 2011 matching the low from 2008.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14518\" aria-describedby=\"caption-attachment-14518\" style=\"width: 530px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DollarIndexTradeWeighted.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DollarIndexTradeWeighted.png\" alt=\"Trade Weighted U.S. Dollar Index\" title=\"Trade Weighted U.S. Dollar Index\" width=\"540\" height=\"324\" class=\"size-full wp-image-14518\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DollarIndexTradeWeighted.png 540w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_DollarIndexTradeWeighted-300x180.png 300w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><figcaption id=\"caption-attachment-14518\" class=\"wp-caption-text\">Trade Weighted U.S. Dollar Index<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"http:\/\/research.stlouisfed.org\/fred2\/graph\/?id=TWEXB\" target=\"_blank\">Federal Reserve Bank of St. Louis, Economic Research<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>With this backdrop, here are the setups I am watching to start the fourth quarter:<\/p>\n<p><strong>Australian dollar<\/strong><br \/>\n{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14511\" aria-describedby=\"caption-attachment-14511\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD-lt.png\" alt=\"The Australian dollar has continued to strengthen against the euro\" title=\"The Australian dollar has continued to strengthen against the euro\" width=\"500\" height=\"350\" class=\"size-full wp-image-14511\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14511\" class=\"wp-caption-text\">The Australian dollar has continued to strengthen against the euro<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14512\" aria-describedby=\"caption-attachment-14512\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD.png\" alt=\"The euro&#039;s recent rally against the Australian dollar has stalled at the 200DMA\" title=\"The euro&#039;s recent rally against the Australian dollar has stalled at the 200DMA\" width=\"500\" height=\"350\" class=\"size-full wp-image-14512\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURAUD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14512\" class=\"wp-caption-text\">The euro&#039;s recent rally against the Australian dollar has stalled at the 200DMA<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14513\" aria-describedby=\"caption-attachment-14513\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD-lt.png\" alt=\"The pound appears to be printing a lasting bottom against the Australian dollar\" title=\"The pound appears to be printing a lasting bottom against the Australian dollar\" width=\"500\" height=\"350\" class=\"size-full wp-image-14513\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14513\" class=\"wp-caption-text\">The pound appears to be printing a lasting bottom against the Australian dollar<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14514\" aria-describedby=\"caption-attachment-14514\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD.png\" alt=\"The pound has already found support at the 200DMA against the Aussie and looks ready for a breakout\" title=\"The pound has already found support at the 200DMA against the Aussie and looks ready for a breakout\" width=\"500\" height=\"350\" class=\"size-full wp-image-14514\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPAUD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14514\" class=\"wp-caption-text\">The pound has already found support at the 200DMA against the Aussie and looks ready for a breakout<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14521\" aria-describedby=\"caption-attachment-14521\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_AUDUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_AUDUSD.png\" alt=\"The uptrend in the Australian dollar essentially ended in late 2010 although it did hit record highs in 2011\" title=\"The uptrend in the Australian dollar essentially ended in late 2010 although it did hit record highs in 2011\" width=\"500\" height=\"350\" class=\"size-full wp-image-14521\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_AUDUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_AUDUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14521\" class=\"wp-caption-text\">The uptrend in the Australian dollar essentially ended in late 2010 although it did hit record highs in 2011<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>The euro<\/strong><br \/>\n{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14522\" aria-describedby=\"caption-attachment-14522\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD.png\" alt=\"The ECB has underwritten a bottom in the euro\" title=\"The ECB has underwritten a bottom in the euro\" width=\"500\" height=\"350\" class=\"size-full wp-image-14522\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14522\" class=\"wp-caption-text\">The ECB has underwritten a bottom in the euro<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14523\" aria-describedby=\"caption-attachment-14523\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD-lt.png\" alt=\"The euro has experienced waves of despair and euphoria against the U.S. dollar over the past 4+ years\" title=\"The euro has experienced waves of despair and euphoria against the U.S. dollar over the past 4+ years\" width=\"500\" height=\"350\" class=\"size-full wp-image-14523\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURUSD-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14523\" class=\"wp-caption-text\">The euro has experienced waves of despair and euphoria against the U.S. dollar over the past 4+ years<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14525\" aria-describedby=\"caption-attachment-14525\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURGBP.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURGBP.png\" alt=\"The euro has bottomed against the British pound but will not likely make much more progress from current levels\" title=\"The euro has bottomed against the British pound but will not likely make much more progress from current levels\" width=\"500\" height=\"350\" class=\"size-full wp-image-14525\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURGBP.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURGBP-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14525\" class=\"wp-caption-text\">The euro has bottomed against the British pound but will not likely make much more progress from current levels<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14526\" aria-describedby=\"caption-attachment-14526\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF.png\" alt=\"How far can the euro continue to lift over the Swiss franc?\" title=\"How far can the euro continue to lift over the Swiss franc?\" width=\"500\" height=\"350\" class=\"size-full wp-image-14526\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_EURCHF-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14526\" class=\"wp-caption-text\">How far can the euro continue to lift over the Swiss franc?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>British pound<\/strong><br \/>\n{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14527\" aria-describedby=\"caption-attachment-14527\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD-lt.png\" alt=\"A tightening range for GBP\/USD that seems bound to break soon to the upside\" title=\"A tightening range for GBP\/USD that seems bound to break soon to the upside\" width=\"500\" height=\"350\" class=\"size-full wp-image-14527\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14527\" class=\"wp-caption-text\">A tightening range for GBP\/USD that seems bound to break soon to the upside<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14528\" aria-describedby=\"caption-attachment-14528\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD.png\" alt=\"The pound experienced a swift run after the Olympics ended but now needs to break resistance at 1.63\" title=\"The pound experienced a swift run after the Olympics ended but now needs to break resistance at 1.63\" width=\"500\" height=\"350\" class=\"size-full wp-image-14528\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14528\" class=\"wp-caption-text\">The pound experienced a swift run after the Olympics ended but now needs to break resistance at 1.63<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14529\" aria-describedby=\"caption-attachment-14529\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY-lt.png\" alt=\"It is subtle, but the pound is actually slowly lifting off major lows against the Japanese yen\" title=\"It is subtle, but the pound is actually slowly lifting off major lows against the Japanese yen\" width=\"500\" height=\"350\" class=\"size-full wp-image-14529\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14529\" class=\"wp-caption-text\">It is subtle, but the pound is actually slowly lifting off major lows against the Japanese yen<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_14531\" aria-describedby=\"caption-attachment-14531\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY.png\" alt=\"Both the 50 and 200DMAs are now supporting the overall uptrend from the lows\" title=\"Both the 50 and 200DMAs are now supporting the overall uptrend from the lows\" width=\"500\" height=\"350\" class=\"size-full wp-image-14531\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_GBPJPY-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14531\" class=\"wp-caption-text\">Both the 50 and 200DMAs are now supporting the overall uptrend from the lows<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>Japanese yen<\/strong><br \/>\n{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_14533\" aria-describedby=\"caption-attachment-14533\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY.png\" alt=\"78 has become a key battleground for USD\/JPY\" title=\"78 has become a key battleground for USD\/JPY\" width=\"500\" height=\"350\" class=\"size-full wp-image-14533\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/09\/120928_USDJPY-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-14533\" class=\"wp-caption-text\">78 has become a key battleground for USD\/JPY<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>Canadian dollar<\/strong><br \/>\n{snip}<\/p>\n<p><strong>Summary<\/strong><br \/>\nI start the fourth quarter with an empty plate looking for trades. I am waiting for the next RBA monetary policy statement to confirm my expectations for Aussie interest rates. I am bullish on the British pound but waiting for a fresh breakout against the U.S. and Australian dollars. I am looking to see whether the euro will hold support against the U.S. dollar. Finally, I am keeping an eye on opportunities to short the Japanese yen. <\/p>\n<p>Be careful out there!<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 1, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/896411-the-best-currency-setups-to-start-q4\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Full disclosure: no positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on October 1, 2012. Click here to read the entire piece.) The major paper currencies have an on-going problem &#8211; many of the financial authorities in charge of preserving their &#8220;value&#8221; are actively trying to drive that value downward, jawboning for a &#8230; <a title=\"The Best Currency Setups to Start the Fourth Quarter\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/10\/18\/best-currency-setups-to-start-the-fourth-quarter\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[386,794,58,20,204,990],"tags":[115,1032,334],"class_list":["post-14501","post","type-post","status-publish","format-standard","hentry","category-australia","category-europe","category-federal-reserve","category-forex","category-japan","category-switzerland","tag-monetary-policy","tag-qe3","tag-swiss-national-bank"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Best Currency Setups to Start the Fourth Quarter - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/10\/18\/best-currency-setups-to-start-the-fourth-quarter\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Best Currency Setups to Start the Fourth Quarter - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on October 1, 2012. 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