International Monetary Fund official stated that currently US Dollar is fairly valued, when compared to other major currencies. IMF's first deputy managing director said during FED annual conference in Jackson Hole, Wyoming, that U.S. currency appears to be reasonably valued by fundamentals and medium-term standards. This is a change from late July when USD was deemed too expensive. Frankly, though, judging by standards of last couple of years, the change over last month was not big enough to change Dollar's standing from "overvalued" to "fair".
All currencies have seen increased volatility over last few weeks. For the most part it is intraday volatility which doesn't translate into sustained longer term moves. Daily swings are large but they have little to no impact on USD is valued within larger picture. In spite reassuring remarks from IMF, we expect current market's uneasiness to continue for some time.
Our systems had moderate returns this week. Both of them were positive for the period and still have great results for August. See numbers below and follow the links for details.
(Sunday 08.23.09).
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Here are the results for last week:
- Daily Pound gained 28 pips ;
- Daily Euro made 80 pips;
Follow the link on the right to view details.
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Last week's results.
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Last week we discussed a sell set up in NZD-USD. Our plan was to get in at 0.6730 looking for 100 pips. Trade came fast in the week. Price slowed down considerably just short of our target. At a sign of reversal we closed our position at 0.6684, for a 46 pips. This proved to be correct decision.
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Currencies have been behaving in a very confusing manner lately. Many false moves in a lot of pairs. Forex chat rooms and message boards are full of disappointing stories about tough times. Fake breakouts, sudden turns at seemingly every news release. We don't think it will last much longer, but for now we will try to adjust to existing conditions.
How exactly are going to do it? By looking for smaller objectives for our trades.One of them is a potential buy in EUR-CHF. Our idea is to enter the market at 1.5195. With choppy markets we only seek to reach 1.5240, for a very modest gain of 45 pips.
We wish everybody 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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