Last week provided real eye opener for all those who were upbeat about the recent "recovery". Economic numbers about industrial output pf some of the leading world economies were released and they were not good. Germany is the world's largest exporter. And in the broadest global recession on record, demand for its exports has come to a virtual standstill. As a result, Germany, the core of the Eurozone, is shrinking at a record pace of 3.8% last quarter. They are not alone. In Japan, world's second largest economy, exports make up 17 percent of their economy. In total, the country's exports are down 46 percent from this time last year. And its all-important auto exports to the U.S., Japan's biggest customer, are down shocking 76 percent.
All these news have a zig-zag effect on currencies. Majors appear to be changing directions from day to day, depending of latest news release. Those are mostly conflicting and confusing to most. We think this phase will last for another week or two and then we'll see more direct moves emerging.
All this intraday volatility has not been good on our services. Both of them showed losses for last week. Results are posted below.
(Sunday 05.17.2009)
|
|
|
Here are the results for last week:
- Daily Pound lost 39 pips ;
- Daily Euro lost 144 pips;
Follow the link on the right to view details.
|
Last week's results.
|
Our last update suggested a trade in USD-JPY. Our plan was to buy it 98.84 with 101.00. objective. This didn't happen. Price fell from the start of the week and never reached our entry. We remain with this pair and moved our buy order down. At this point our trade is set to enter at 96.25 with a target of 97.50.
|
For the next trade of the week we are taking a look at AUD-USD. This pair has seen substantial price run up over last few week. It is a little overdone in our opinion. We are looking for a correction. There are signs of coming USD strength on intermediate term charts and that could be market wide. For now we are looking at AUD-USD.
We want to sell it at 0.7462. Expected move is of good size, to maybe as low as to 0.7340. We hope that once initiated, trade will not take long to complete.
We wish everybody great trading week!
|
|
|
|
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 .
|
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.
|
|
