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| Interest rates on the rise.
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Among some of the more interesting developments last week in the world of Forex, was the interest rate announcement from Canada. That nation's central bank raised its official benchmark to 1%, a third increase in four months. In response, the Canadian Dollar strengthened significantly for most of the week. Many other, smaller countries also hiked their rates, or are expected to do so soon. Meanwhile, market forces pushed longer term rates on US treasuries to a highest level in a month. Combined with positive employment news from around the globe, it would appear that we are at an important juncture of currencies' trends. We expect that long term trends will be decided during next few weeks- currencies like the JPY and CHF will either start new powerful legs in their bullish progress or will reverse. Dramatically. We will know soon.
Our services had a quiet, yet positive week. Please see the results below and follow the link for details.
(Sunday 09.12.2010.)
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Here are the results for last week:
- Daily Pound made 45 pips ;
- Daily Euro gained 15 pips;
Follow the link on the right to view details.
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Last week's results.
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In the last update, we covered a possible short trade in AUD-NZD. Our sell was at 1.2670, with a 1.2600 objective. The trade happened early in the week, but the price failed ti reach the target. We closed it at the end of a distinctive hammer candle pattern, which suggested the end of the down push. Exit was at 1.2633 for a 37 pips profit.
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Trade of the week.
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In light of rather positive employment data last week from around the world, the high flying currencies of Japan and Switzerland began to show some weakness. It is too early to tell if the major bullish trends are about to reverse, but a correction of some dimension is very likely. That makes our possible buy in EUR-JPY from last update still valid. I addition, we are taking a look at Swiss Franc pairs.
The GBP-CHF could be one of them. Intermediate term chart is building what looks like a bottom, which, if completed, might lead to a larger up move. We are interested in buying it at 1.5865, expecting an appreciation of 150 pips in short order. Since it is not a very short term chart we are using, this set up might take some time to fully develop.
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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