Just as it appeared that the Euro crisis was under control, more bad news from the continent shook the markets up. Fitch Ratings downgraded Spain one notch from its AAA status, Spain's second ratings cut after Standard & Poor's lowered its rating in April. Spain is struggling to convince investors it can solve its economic woes and avoid a Greek-style debt crisis. The country, and Italy, announced huge budget cuts, dubbed as "austerity measures". The decision by Fitch echoes concerns from economists that efforts to cut state debt will also withdraw stimulus from the economy and hinder growth. Lower growth in turn means gathering less in tax revenues. Seems that no matter what happens, outcome will be the same - slower growth, or recession, in Europe.
Our systems had a quiet week, with both of them reporting small losses. However, the month of May has been very good producing strong gains. Please see the results below and follow link for details.
(Sunday 05.30.2010.)
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Here are the results for last week:
- Daily Pound lost 6 pips ;
- Daily Euro lost 61 pips;
Follow the link on the right to view details.
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Last week's results.
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In our last update we covered a long trade in USD-CAD. We wanted to buy it at 1.0390, looking for large move, to 1.0700. Market behaved as expected. Strong move came swiftly and our trade met the objective for 310 pips gain.
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Trade of the week.
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Last week brought an end to the appreciation of USD and the Japanese Yen. Or at least a consolidation. Right now most currencies are forming potential reversals on medium term charts. However, any more bad news from Europe can easily cause resumption of previous trends.
For right now we are going with what the charts are indicating. In case of NZD-USD, we are expecting a buy, with entry at 0.6890. Target for this trade is 0.7000. If the price fails to reach entry point within few days, we will try to sell it. For now, the buy order is in place.
We wish everybody 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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