I find this to be one of the most difficult readings in the curriculum. What percentage of the exam do you realistically expect this will be?
This reading MAY seem extremely difficult at first. The trick is to view EVERYTHING in terms of the base currency. Therefore you can think of it just like a stock.
Example:
USD/EUR = P/B
you expect the euro to appreciate = you expect the stock to increase, buy a call option on euro (the sock)
you expect the euro to derpeciate = you expect the stock to decrease, sell short, sell euro forward, buy a put, etc. on the eur (the stock)
^^ this helped me soooooo much because this reading had my mind spinning