Euro has fallen hard last week, in a move attributed to troubles on the continent. Greece and its budgetary problems dominate the news. European Central Bank and Greek financial authorities continue debating possible relief for the country. Some are denying possibility of bailout, while others want to see drastic cuts in domestic spending. Greek bonds suffered in the aftermath, with yields shooting up by about one full percentage point in a week, to almost 7%, the highest rise on record. This issue is still unsolved and another one emerges. Spain became another country on a hot seat and is trying to retain investor's credibility by reducing its spending. New budget was proposed and now it remains to be seen how well it is received.
At the same time, Swiss National Bank is rumored to have intervened in open markets late Friday, trying to bring the Franc down in relation to the Euro. Since they had done it before, this notion has some credibility, but price behavior doesn't quite support it. We think that news from Europe will stay negative for the foreseeable future.
Our services had a mixed week, and month for that matter. One registered decent gains while the other was practically flat in January. Please see the results below and follow link for more details.
(Sunday 01.31.2010.)
| Subscribe
Services
Forex Data
Forex Bookstore
|
|
Here are the results for last week:
- Daily Pound made 19 pips ;
- Daily Euro lost 9 pips;
Follow the link on the right to view details.
|
Last week's review.
|
The trade featured in last update, a sell in AUD-USD, took place. It worked as intended. Once the price went through our entry at 0.9160, things progressed fast. Objective of 0.9000 was reached in two days, for 160 pips gain. Good result for the currency and time frame used.
|
Our longer term trade in USD-CHF is finally under way. Order was filled at 1.0520, targeting 1.1000. We don't expect this trade to come to a speedy conclusion and we will update it periodically.
|
Trade of the week.
| 
|
US Dollar was very strong last week and advanced strongly against all other currencies. While small pull back should be in order, we mostly expect this trend to continue, IF some important price levels are broken. It has not happened yet, so we look at shorter time frame for our next trade.
This time it is USD-JPY. Price behavior is not very smooth, as both of these currencies are greatly influenced by news, but this shouldn't be a problem for a small target trade. On hourly chart we want to see a move above 90.98. If this happens, we think will likely reach previous high. Our target is 91.80.
Have a 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.
|
|
