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| Swiss Franc breaks parity.
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The Swiss Franc continued its rally, breaking the parity with the US Dollar and dipping under 0.9800 level. This move went almost as far as the all time low of 0.9640, established in 2008 during the height of the global financial crisis. It seems that this CHF appreciation was driven by investors seeking currency stability. By some accounts, recent intervention by the Bank of Japan prompted many to seek shelter in the Swiss Franc, as the currency is a symbol of perceived stability of Switzerland's economy, as its trade surplus frees the nation from dependence on overseas capital.
It is not, however, a one way street for the CHF. It actually weakened against the Euro, so the advance is not as broad one would expect. With this in mind, this rally might not last much longer. More on the Franc farther down this page.
Currencies remain volatile, which is good for our systems. Both services had positive, and good, returns last week. Please see the results below and follow the link for details.
(Sunday 09.26.2010.)
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Here are the results for last week:
- Daily Pound made 166 pips ;
- Daily Euro gained 216 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 discussed a possible trade in the USD-CHF pair. Plan was to buy it at 1.0187. Turned out that this price level was not reached, the exchange rate just kept drifting lower. We are adjusting this trade, still looking for a long entry. The order was moved down to 0.9905, with an objective of 1.0005, or a 100 pips.
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Trade of the week.
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Another one of currencies that gained recently is the British Pound. Not as strong as the Euro, perhaps, but certainly not a laggard either. We think this will extend, in some pairs, at least. One of them is the GBP-JPY.
If the price moves above 133.88, we see it as a good place buy. Not for a large move, but a simple price swing of a little over 100 pips. The exact objective is 134.95.
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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