Dominant news in Forex circles leading to Easter, certainly was action by Swiss National Bank. Just few weeks ago SNB official stated that central bank was done selling Swiss Franc and will allow CHF exchange rates to be determined by market forces. Recovery in Switzerland was strong enough, to withstand any 'normal" appreciation of CHF. Would appear, that financial authorities deemed Franc's rise excessive after all. It reached an all time high against the Euro since original announcement and seemed to be heading higher still. On Thursday SNB resulted to slowing down this process by dumping its currency. Bank had no comment so it is hard to determine what their intentions are. Past interventions had very little longer term effect, only managed to shake markets on most immediate bases. Will have to wait and see how committed SNB is this time.
Our services had good, if abbreviated week. Not trades on Friday. But even with that, both systems had positive period. Month of March as a whole was mixed, with one service getting strongly ahead, while the other lost some pips. Please see the results below and follow link for details.
(Sunday 04.04.2010)
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Here are the results for last week:
- Daily Pound made 155 pips ;
- Daily Euro gained 166 pips;
Follow the link on the right to view details.
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Last week's results.
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During last update we focused on CHF-JPY. Our intention was to sell this cross at 84.70. Price indeed dipped under entry, but reversed almost immediately and proceeded higher. Trade was stopped out for 95 pips loss. Japanese yen came under intense selling pressure from all corners and slid against all currencies. At the same time, Swiss Franc became so strong, that Swiss National Bank sold it on the open market. We are at extremely interesting intersection for this pair and feel a corrective down move is very likely. New sell order is placed at 88.40. with a large objective of 87.00. This might take 2-3 weeks.
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Trade of the week.
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For this update we are taking a look at one of the commodity currencies- New Zealand dollar. Its pair with USD has settled into intermediate term range, which has lasted for some time now. We seek a relatively small move, still within congestion zone.
Our idea is to sell NZD-USD at 0.7028, for a relatively small objective of 0.6950. NZD is clearly the weakest of commodity dollars, so it will likely be the first to fall against USD. At this time longer term direction could turn either way, so we focus on smaller swing.
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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