No doubt about it- British Pound was the center of action in Forex last week. Forget USD and never ending despair about its fall, or Australian Dollar by now way above 0.9000 against USD and voices calling for parity. GBP played serious surprises on markets last week. First the currency enjoyed great run only to collapse by hundreds of pips on Friday. British Office of National Statistics reported that UK economy contracted by 0.4% in the third quarter, which pulled a rug from under GBP. We don't think this will last very long, but those moves were great news for us.
Our services both had positive week, with Daily Pound showing huge gains of almost 400 pips in few days. British Pound exhibited great volatility and our system captured the moves. We mentioned it before, but it is important to stress it again- systematic trading, like our systems, must be done with great deal and patience and discipline. After few flat weeks, we were in position to capture large moves, because we kept placing our orders. One never knows when these extraordinary swings will happen. We hope to see more of that in the future.
(Sunday 10.25.2009)
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Here are the results for last week:
- Daily Pound gained 396 pips ;
- Daily Euro made 29 pips;
Follow the link on the right to view details.
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Last week's results.
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Previous trade of the week was a buy in USD-JPY. We wanted to go long at 90.52, targeting 92.00 level. Trade worked out almost as intended, reaching objective on Friday. Trade was profitable almost entire duration, with a minor pull back under entry price once. Good set up.
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US Dollar has been getting attention of the media. Everybody is lamenting the fall of green back, mostly because of the 1.5000 level reached by EUR-USD. Doom and gloom is seen everywhere. maybe, but this is only a small part of a very big picture. For example, USD managed to put a decent rally against the Yen, something demonstrated by our last trade.
We don't think that USD is quite dead yet. While we don't dispute the fact that extremely long term fundamentals look bad and can only be changed by focused and consistent action at the highest levels of government, we think USD will have many rallies ahead. This one is an example.
In our view move in Australian Dollar is overextended and this pair is due for a correction. We want to sell AUD-USD at 0.9177, looking for a 100+ pips move, touching 0.9070. We think it is going to happen soon and are placing short order here.
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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