Issue of Chinese currency is taking a front seat once again. President Obama is visiting China and many politicians, as well as reporters, are calling for hard stand on the currency issue. Very tricky spot for the visitor. With massive budget deficit to fund this year and beyond, he would like his hosts to continue buying our debt. At the same time unwillingness by Chinese authorities to let Yuan appreciate is attracting global criticism, not just from. Statement for country's central bank went as far as calling FED's low interest policies damaging to long term financial stability. They claim that cheap money flooding markets is creating new bubbles, ready to burst, undermining any recovery. To their credit, financial authorities also indicated possibility of allowing some Yuan appreciation. No details at all were revealed, so we don't know how much weight any of this carries. Entire issue is very complex and bound to be in the news for a long time.
Our services had mixed week, and with one showing profit while the other registering a loss. Next week roles will probably reverse. Please see the results below and follow link for details.
(Sunday 11.15.2009).
|
|
|
Here are the results for last week:
- Daily Pound made 94 pips ;
- Daily Euro lost 26 pips;
Follow the link on the right to view details.
|
Last week's results.
|
Our last update included a potential trade in EUR-AUD, which was sort of a follow up to a good AUD-USD trade a week before. Unfortunately, this one didn't work out as planned. Our entry was at 1.6439 after which we allowed the price to fluctuate in a relatively wide range. Eventually we placed as top at 1.6319. Shortly after that trade was stopped out for 120 pips loss.
We are not, however, finished with this pair. We still want to buy it, thinking that an upside move will come this week. We will be buyers on any move above highs on hourly charts, looking for 200-250 pips.
|
In spite of the setback in our last trade, we decided to stay with Australian Dollar for next one. In our opinion correction for this currency should happen soon and we want to be in when it happens. Or at least be ready for it. With this in mind we are taking a look at another pair, AUD-JPY.
This cross is building what we see as a topping pattern, at least for intermediate term. No confirmation has happened yet and that is what we are waiting for. For us that will be a move to 82.91. If that happens we expect the price to fall at least to 81.90. That's our objective for this move.
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.
|
|
