While we are using mostly technical analysis in our trading, we are also trying to keep up to date with fundamental developments. This help us form more educated opinion about bigger picture, which, in turn, is helpful in actual trading.
Until recently, fundamental outlook for European economy, and currencies, have been bleak. In Euro zone, for example, region's economy was expected to fall 4.8% in 2009. predictions by IMF were also negative for 2010.
Much to everybody surprise, this has changed last week, Germany and France, which are two largest single economies within EU, both posted growth for the second quarter. This prompted some of the central banks to change their outlook for the year. It was mostly upgraded.
Currencies are reacting with uncertainty to these news. Analysts are largely divided on how solid this new data is. Is it real or statistical aberration? Until markets reach consensus on the subject, we can expect increased volatility and more frequent changes in direction. Never a dull moment.
Our systems recorded a positive week. Nothing like the one before, but one that makes August very good month to date. See results below and follow the link for detail. Also, make sure to view our detailed pages, which were updated, including performance graphs.
(Sunday 08.16.2009).
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Here are the results for last week:
- Daily Pound made 55 pips ;
- Daily Euro made 34 pips;
Follow the link on the right to view details.
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Last week's results.
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Our trade of the week from last update was a buy in EUR-CHF. We entered it 1.5235, seeking 100 pips gain. Market did it for us, with some jitters. There was big spike against our position, but target was reached. Good trade.
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We gad been following AUD-USD for a few weeks, looking for a short trade, market kept running away from us, but eventually did turn. We moved our entry and were ready for it. Sell happened at 0.8325 and made quick 75 pips, when market reached 0.8250. Not bad, if discount the long wait.
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Last week markets experienced strong moves. Japanese Yen and most of its pairs saw a jump in volatility, biggest in few months. Corresponding moves in USD were not as dramatic. We said most, not all. One of the currencies which remained relatively strong was New Zealand Dollar.
We think this might change pretty soon here and the Kiwi will follow others. With this in mind we are looking at NZD-USD pair for next trade.
In our view chances are high for a good size move down. We are placing a sell order at 0.6730. Objective is 0.6630, fairly large for hourly chart of this pair.
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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