After weeks of speculation and rumors Greece announced it had agreed with the European Union and International Monetary Fund on the terms of a multi-billion Euro rescue package aimed at averting a sovereign default. In very clear terms country's government stated that this is the only way to avoid bankruptcy (sovereign debt default), which is a line that "can not be crossed".
Greece is expected to reduce the budget deficit from 13.6% of gross domestic product to below 3% of GDP by 2014, and stabilize the public debt at around 140% of GDP. Greek population is unlikely to embrace the agreement. It calls for tough measures to shrink the size of the country?s bloated public sector, including a salary freeze, the abolition of bonuses and job cuts at state corporations and other entities. Next week will demonstrate if this is enough to calm financial markets and restore confidence in other European countries.
Our services had a good week, even if not equally so. Both of them were pip positive. And so was the month of April. Please, see the results below and follow the link for details.
(Sunday, 05.02.2010
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Here are the results for last week:
- Daily Pound made 53 pips ;
- Daily Euro gained 133 pips;
Follow the link on the right to view details.
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Last week's results.
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Early in the year, we suggested a long trade in USD-CHF. It was based on daily chart and had a large target. Entry was at 1.0525, with an objective of 1.1000. It has been a few weeks since we updated it. This pair has made a nice run up, coming close to our target and then retreated. Recently it staged another rally, above 1.0900 level. Once again, it ran into resistance there, so decided to close the trade. Exit took place at 1.0887, for a gain of 362 pips.
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Our most recent trade posted here was in AUD-USD. We ere looking to short this pair at 0.9218, seeking 0.9148 level. Sell off indeed happened, but fell short of reaching objective. price started to reverse and we closed for a small gain of 25 pips.
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Trade of the week.
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Last few weeks were dominated by extraordinary events happening in Europe. Euro has lost a lot of value, following debt rating downgrade of Greece, Portugal and Spain. It appears financial markets calmed down over last couple of days, or at least EUR did. Short term volatility, however, should remain high.
We are looking at EUR-USD, smaller time frame. At this time longer term trends are very difficult to trade, so hourly chart might be better to find trading set ups on. This pair should be volatile enough for good size swings on any chart. Our plan is to sell EUR-USD at 1.3249 and hold it until it reaches 1.3150, or almost 100 pips.
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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