Previous few weeks have been dominated by news about recovery coming from Asia, Australia, even Europe. In short, everywhere, in US recession appeared to be over. These news were connected to rising fortunes of the likes AUD, NZD, CAD and many other currencies, all at the expense of the US dollar. Well, all this might be changing.
Few days ago it was announced that GNP in the United States rose for the first time in 2 years. Increase was 0.3%, not big, but enough that the recession was declared "over". Premature jubilation, in our view, but it coincided with firming up of USD and the Japanese Yen. Combined with technical analysis, we think that a big shift is just around corner, reminding the panic of last year. We are reasonably convinced that nothing as severe will happen, but USD should get stronger for a period of weeks, maybe even months. Reversal of fortunes. We will follow up on this in future updates.
Our systems had a great week . This time around it was the Daily Euro that was superior performer. With volatility in EUR-USD jumping dramatically, large moves took place. System had dramatic gains this week and both of our services had great month of October. See the results below and follow links for details. Our complete record pages have been updated, including performance graphs, so visit them, too.
(Sunday 11.01.2009)
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Here are the results for last week:
- Daily Pound made 75 pips ;
- Daily Euro gained 346 pips;
Follow the link on the right to view details.
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Last week's results.
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During our last update, a trade in AUD-USD was suggested. We were planning to sell this pair, based on expectations for Australian Dollar to have a correction. Sell order was placed at 0.9177 with a decent target of 0.9070.
We are pleased to announce that trade worked as expected and produced 107 pips in a good order. Here is the chart.
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Last couple of weeks brought on weakness in commodity currencies and strength in US Dollar and Japanese Yen. Current conditions are reminiscent of this time last year, when similar situation took place. This time around we don't expect markets to have the same, panic stricken behavior, but we expect corrections in the recent high fliers. This includes Australian Dollar.
Last week we had a trade in AUD-USD and we think that troubles for AUD will continue in a broader sense, covering other crosses. Like EUR-AUD, for example. In our opinion Australian Dollar will suffer in relation to Euro, so we want to by this pair. Plan is to buy it at 1.6439, with an objective of 1.6650. We are using an intermediate term chart, so trade can easily take 2 weeks or more.
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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