Currency markets have been busy digesting big time fundamental news. China moved on its banking system with new restrictions meaning to slow down economic expansion and prevent it from "bubbling" over. But it seems that most dominant developments are coming from Europe in regard to ever deepening financial crisis in Greece. Since concerns began to heighten over the ability of that country to service its debt at the turn of the year, the single currency has been under relentless selling pressure. Last week European leaders reluctantly agreed to assist Greece, but the details have not been disclosed and some suspect might not be going far enough. If they do, this open door for other countries within the Union to ask for help with their own financial problems, something that EU might not be able to afford. Some speculate that should current strife deepen, it might spell the end of Euro as an effective common currency. Probably exaggerated fears, but should indicate seriousness of uncertainty. News from the continent should followed closely.
Our services had a mixed week. Daily Euro posted a small gain and is nicely positive year to date, but Daily Pound registered losses. This service is about flat for the year. Please see results below and follow the link for more details.
(Sunday 02.14.2010).
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Here are the results for last week:
- Daily Pound lost 68 pips ;
- Daily Euro gained 18 pips;
Follow the link on the right to view details.
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Last week's review.
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In our last update we discussed possible trade in USD-JPY. This pair was getting ready for a breakout to the upside. We placed a buy order at 90.98, with an objective of about 100 pips. The move happened, but reversed rather quickly at we were forced to take a 93 pips loss. We will return to this pair in near time.
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Our Trade in USD-CHF is moving right along. Price has reached 1.0800 level, not that far away from the objective of 1.1000. As a reminder, we are using daily chart for this, which means that trade can still take some time. Good size pull back can be expected, before target is finally achieved.
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Trade of the week.
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Last week ended in a choppy fashion for many currency pairs. Some closed Friday in a standby mode, awaiting more market information to digest. This makes new analysis difficult, especially for most immediate future.
Swiss Franc remains under pressure, due to implied threats of intervention by SNB, and its close connection to Euro, with unresolved issue of Greece bailout hanging over the markets. Chances for more weakness in CHF are reasonably high.
We are taking a look at GBP-CHF intermediate term chart. While British Pound has its own problems, it started to push against Franc. We think it will continue and are placing a buy order at 1.6960. Our objective is 1.7150, but in the current environment sharp turns are very possible, so should be we see over 100 pips gain, we will be ready to close it at first sign of trouble on this time frame.
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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