Without a question, this was a big week. Most important development was certainly inauguration of Barak Obama as a new president of United States. New administration inherited country in the middle of the worst financial crisis in decades. In spite of positive spin media tried to put on this event, talking about "change", "new hope" and other such rhetoric, financial markets did not respond favorably. Bad economic news once again dominated headlines. More and more companies were announcing lay offs, including such powerhouses as Intel and Microsoft. For Microsoft it is believed to be first large scale move of this kind, designed to shed 5000 jobs.
Big week didn't end there. In Forex news Pound continued to get lower, loosing another 1000 pips to Yen and making a multi decade low against USD. Timothy Geithner- appointee to Secretary of Treasury post- accused China of currency manipulation, claiming it artificially inflates prices of American goods. This statement was rebuked by Chinese officials as "not in line with facts". We will most certainly hear more of this in months and years to come.
Both of our systems had good and profitable week. Please see the results below and follow the link for details.
(Sunday, o1.25.2009.)
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Here are the results for last week:
- Daily Pound made 103 pips;
- Daily Euro gained 222 pips;
Follow the link on the right to view details.
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Last week's results.
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Our trade from last week was intended to be in EUR-GBP. We were looking for a sell. This didn't happen, since the pair moved to the upside. This trade is now cancelled. trade presented here 2 weeks ago faired much better. After prolonged wait, USD-CHF breached our entry level of 1.1298 and didn't look back. Target was reached at 1.1550, for a good gain of 257 pips.
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One of the major currencies that suffered almost uninterrupted fall has been NZD. Since the credit crisis began, New Zealand dollar lost about half its value. Over last few weeks new troubles emerged, including a downgrade of country's credit worthiness by S&P, credit ranking agency. While we don't know if the slide is going to end here, an intermediate trend chart suggests possible buy situation.
We are placing a buy order at 0.5374 for NZD-USD. Objective for this trade is 0.5500. At this time we see it as a correction rather than a reversal for this pair. Time frame used dictates about a week's waiting time.
Have a 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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Risk disclaimer:
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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