What a move!
It has been a long time since USD has had a move like the one we just witnessed. All week long the dollar has been getting progressively stronger. On Tuesday the 5th, FED decided to leave interest rates unchanged. While this had been widely expected, financial authorities came under heavy criticism, for not seriously fighting inflation. That would require the rates to be hiked, but FED is afraid to farther hurt fragile economy. We think the rates should be increased by a minim um of one full percentage point, if not more. Inflation is rampant, as expressed by food prices. The current 2% rate is laughable. It doesn't promote savings and, to the contrary, still encourages reckless borrowing even as the sources of funding are drying out.
On Friday USD has had the biggest day in 8 years against EUR. This is pretty remarkable. Dollars gains on other major currencies were also very big. GBP, CHF and perhaps most notably AUD and NZD have all taken large losses.
Our services had good gains last week, especially the "Daily Euro". This system had above average results, courtesy of exceptionally large moves in the underlying pair. We hope this trading environment continues.
Please see the results below and follow the link for details.
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Here are the results for last week:
- Daily Pound made 97 pips ;
- Daily Euro gained 268 pips;
Follow the link on the right to view details.
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Last week's results.
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Our trade from last week was a buy in USD-CHF. The set up was to go long at 1.0530 with a target of 1.0600. As we can see, due to large run up of the dollar, this trade worked out as intended and in short time. Our gain was 70 pips.
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After all the large moves from last few days it might be difficult to find the kind of trades we are looking for, especially in USD pairs. We need to take a look outside the dollar. We think the weakness in Euro will continue. At least long enough to produce a few pips here. The cross is EUR-AUD. Our intention is to sell it at 1.6830 and we are looking for a target of 1.6730, or 100 pips.
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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