Excessive spending policies of few member states are finally catching up with Euro. It plummeted over last 2 weeks to lows from 2008 financial crisis. EU government approved nearly a trillion dollar relief package, including help from IMF and the FED, but so far it had little effect on falling common currency. The bailout is viewed as putting slowing down European recovery, or even pushing the continent back into recession. Meanwhile all kinds of figure pointing and accusations started in earnest. Greek prime minister blames US investment banks on deterioration of this country and threatens legal action against them. Germany wants to introduce budget laws within the union, aimed to penalize countries no practicing fiscal discipline. Also, speculations fly about Germany, maybe France, being ready to break up monetary union. We can expect news from Europe to dominate wires for some time, even if Euro will probably slow down its downward slide.
All this volatility was great for our systems, at least one of them. Euro trading service registered great gains, taking advantage of oversized moves. Please see results below and follow link for details.
(Sunday 05.16.2010.)
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Here are the results for last week:
- Daily Pound made 153 pips ;
- Daily Euro gained 221 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 suggested a trade in EUR-USD, selling it at 1.3249. Using hourly chart we went for a respectable objective of 1.3150, almost 100 pips. Trade unfolded very fast and came to satisfactory conclusion within couple of days. After that Euro just kept on falling...
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Trade of the week.
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Currencies are still volatile and are likely to remain like that for foreseeable future. If European uncertainty continues, or spills to other parts of the world, money should continue to flow towards Dollar. Over last couple of weeks it was demonstrated that really no currency is too safe, including commodity dollars.
Canadian Dollar held its own for some time, but eventually it also started to slide. In the event turmoil goes on, we want to go long USD-CAD at 1.0390. Objective is large at 1.0700.
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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