Here it is, yet another very strong week for USD. Very funny, this bull run started about a month ago, yet it is just now that the main stream media is picking up on the fact. As a matter of fact about the time this move started, there were virtually NO dollar bulls publicly vocal. Just like it usually happens.
It is important to note that the seeds of this dollar reversal have been planted as early as in April. That's right, this large topping pattern has been in the making for a long time, and it resulted in really nice moves. GBP-USD dropped about 1500 pips, EUR-USD fell 1300 pips, and perhaps most telling NZD-USD plummeted 1300 pips, or a stunning 20%. This is in spite of the huge NZD positive interest rate differential.
We expect some slowing down here in dollars progress. Not a trend reversal, but rather some consolidation. In one of the most peculiar development of recent days, the crisis in Georgia somehow failed to be reflected in financial markets, even though it has some potential for world wide repercussions (though, admittedly, unlikely).
While the dollar continued its run, the nature of the move has changed, from an almost parabolic profile to a series of jittery moves. This had a reflection on our services. Most notably, "Daily Euro" had the worst week since January.
Our detailed results pages have been updated, including performance graphs. Please follow the link provided below.
Sunday, 08.17.2008.
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Here are the results for last week:
- Daily Pound lost 75 pips ;
- Daily Euro lost 275 pips;
Follow the link on the right to view details.
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Last week's review.
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Last week we were taking a look at a possible trade in EUR-AUD. The set up was to sell it at 1.6830. Our order was filled very early in the week, and was stopped out just as fast. Only few hours later, price moved up to 1.6900 and we were out of this position with 70 pips loss. The sell off we anticipated came couple of days later...
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As we all know USD has been on a serious run for last few week. It looks like the dollar might be taking a break here. We don't think it is any longer term turning point, but more of a pull back. Looks like some currencies are trying to regain some ground. One of them is Canadian Dollar. Our set up is in USD-CAD. We placed a sell order at 1.0555 with a target of 1.0500. We are using hourly chart so the trade shouldn't take too long.
Have 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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