US Dollar has been in the news lately. And a lot more than normally. There's speculation about its demise and the loss of its world reserve currency status. This recent round of dollar bashing started with sharp increase in interest rates during Treasury auctions. This prompted speculation about large money outflow from dollar. Everybody is speculating that China will switch its reserve to another (yet unnamed) asset class. It doesn't help matters that China, India, Russia, Brazil and few others large US lenders will meet in Moscow this week to discuss financial matters. We can all be assured that Dollar will be high on the agenda.
On top of that, rising commodity prices are also being blamed on weakening dollar. Crude is prime example. Unfortunately, this logic doesn't hold water, because we had few days of USD getting stronger, during which time oil also increased. Media seems to feed on this kind of circular logic: oil pushes down the dollar, only to have the dollar lift the oil next day. Regardless, USD remains in the spotlight.
With the Dollar pairs showing large moves, our systems had a good week. Both of them showed large gains. See the results below and follow the link for details.
(Sunday 06.14.09)
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Here are the results for last week:
- Daily Pound gained 52 pips ;
- Daily Euro made 115 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 focused on AUD-USD. We wanted to sell this pair at 0.7875. Price moved our direction shortly after markets opened, but reversed sharply soon after. It kept moving up all week long. Our trade was stopped out at 0.7953 for a loss of 78 pips. We have a new sell order at 0.8051, with an objective of 0.7965.
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US dollar had a very rough stretch lately. Bad news coming from every direction- ballooning federal deficit, increasing rates, commodities prices on the rise. There is even more, as explained in the story above. In spite of all that, the dollar appears to be turning around, for a short time at least. We tried it last week, without much success, and we will do it again.
This time we are using USD-CHF as our instrument of choice. Plan is to buy it at 1.0864 with an objective of 1.1000. Decent target. If we are right, this should be a quick trade.
We wish everybody 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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