Yet another week of large moves. US Dollar and Japanese Yen have gotten much stronger, at the expense of every other currency. Particularly strong hit were Australian Dollar and British Pound. After such severe fall what is the AUD outlook?
Aussie has tumbled to 0.8030 against USD, which is a year low. This seems a little strange, For a few years now AUD was making nothing but new highs. It has been a while since new lows for this currency were reported. This was not a sell off against USD, but a broader move. Australian Dollar also suffered massive losses against JPY. rate fell to just above 85.00, which is another yearly low. Incidentally, Japanese yen had a best week since last summer.
So, what is AUD outlook? Longer term is not very promising, with steadily worsening economic numbers.The Aussie Dollar was also undermined as the Reserve Bank of Australia cut interest rates for the first time in seven years, lowering its main lending rate 25 basis points to 7%. Our immediate view is a little more positive. Scroll down this page to see our trade of the week.
European Central Bank and the Bank of England also had interest rate announcements. Both were left unchanged at 4.25% and 5% respectively.
Our service had positive week, with both of them showing gains for the period. See the results below and follow the ling to for details.
(Sunday 09.07.2008)
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Here are the results for last week:
- Daily Pound made 35 pips ;
- Daily Euro gained 86 pips;
Follow the link on the right to view details.
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Last week's review.
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Our trade in GBP-CHF from last didn't happen. Price never reached our buy level, which was 2.0140. Just the opposite. It moved down for most of the week. Some signs of possible reversal finally showed on Friday. At the close we entered into a long position at 1.9778. Our target for this trade is 1.9950.
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Here is an example of the recent Yen strength. As we can see AUD-JPY has fallen by hundreds of pips. This is due both to Australian Dollar weakness, as well as Japanese Yen strength. It is possible that this large down move is over, for now. This pair has bounced sharply on Friday. We think this might continue and we entered into a long position and the close before weekend. Our fill was at 87.98 with a target of 90.00.
As we have seen all JPY crosses are moving fast and a lot, so this trade is not for the timid.
We wish everybody great trading week!
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Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com .
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Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.
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