Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
Exporters/Importers or those with US Dollar portfolio’s must have difficult times, with present daily volatilty in the currency markets, in order to maintain their home currency portfolio value.
Hedging is a combination of profit and losses in order to create an average price level to avoid (corporate currency) risk.
For the EUR/USD the hedge percentage (bottom pane on the chart below) went quickly above zero at the beginning of December 2008 and up to 100% long later in the month.
Today, with heavy moves again, the hedge percentage went only down from 100% to only 80% long so we maintain 80% long in EUR/USD.
Of course there are many ways to hedge your currency risk but the basic analyses is looking the activity of the next time frame, in this case the weekly data (boxes on the chart below).
