Official aid for Greece has been finally approved by both EU financial ministers and IMF. Amount of loans is to be about EUR 45 billion, with 30 billion coming from EU and 15 billion provided by IMF. Greece has long maintained that it doesn't need funds anytime soon, but, with many of its sovereign debt issues maturing next month, Greek government is expected to formally ask for help. Perhaps as early as this week.
This is causing deep cracks in EU. Germany, its largest economy, has been a strong opponent of any rescue package. Things progressed to a point, that speculations emerged about Germany wanting to split Euro group, with only most financial stable countries using it. At the moment, these are just rumors, but should more bailouts be necessary, this will go beyond speculation phase. Such move would almost certainly kill Euro as a viable currency, putting entire existence of entire European Union into jeopardy. Let's hope it doesn't happen.
Our systems had flat week, with one breaking even and the other one showing small loss for the period. Please see results below and follow link for details.
(Sunday 04.18.2010)
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Here are the results for last week:
- Daily Pound made 2 pips ;
- Daily Euro lost 37 pips;
Follow the link on the right to view details.
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Last week's results.
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In our last update we focused on a short trade in CHF-JPY. Earlier we had a losing transaction in that pair, for -90 pips. Our sell had been premature. That was followed with another short at 88.40, with larger objective of 87.00. This time everything worked just fine target was reached and we made 140 pips profit, easily recovering earlier loss.
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Another trade from last update included NZD-USD. Our idea was to sell it 0.7029 and expecting a move to 0.6950. Well, the move came but fell about 15 pips short of objective. We decide to close it before break even point. Trade brought 10 pips and market kept moving against us. Turned out to be correct move.
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Trade of the week.
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Currencies became volatile again last week, with uncertainty creeping right back into financial markets. China is expected to take steps to cool its economy, fraud charges against Goldman Sachs, not only here but potentially in Europe as well. This probe will like widen its scope with regulators going after more of questionable practices of financial companies. We've already seen money flowing into Yen and Dollar, at the expense of commodity currencies.
If this continues, we want to be on a long side of USD. This time we are looking at AUD-USD, with intent to sell it. We estimate entry to be at 0.9218. Hourly chart doesn't offer very good objective, but 0.9140 doesn't seem too bad. Especially if it happens fast.
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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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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