This week we had more trouble in Asia. Most of us focus on news close to home, but current financial crisis is a truly world wide phenomenon. We have been barraged with bad news from first US, then Europe, now Asia. Pakistan has officially asked IMF for assistance, as default risk on foreign loan payments has become inevitable. Real panic also unfolded in South Korea, where the government had to step in and repeatedly provide added liquidity. Won has suffered severely. Credit crunch is also spreading to China, where even Macao's casinos report sharply lower revenue. In India central bank employees are going on strike Tuesday. This will bring to halt daily injection of liquidity into the markets. List goes on and on.
Trouble in Asia aside, there was not much good to report from any other region. Housing starts in US in on the slowing pace since the end of World War II. Nonetheless, the volatility dropped a little, but a lot of indecision remains. Markets are very sensitive to news and are very likely to remain so for the foreseeable future.
Our systems are still suffering, but it looks like the price flow in our targeted currencies is changing, which should have positive effect on our services. We updated detailed performance pages. You can view them by following the link below.
(Sunday, 10.19.2008.)
|
|
|
Here are the results for last week:
- Daily Pound lost 48 pips ;
- Daily Euro shed 173 pips;
Follow the link on the right to view details.
|
Last week's results.
|
Here is our trade of the week from last update. Premise was to buy it at 86.00 with a target of 88.00. Trade was initialized soon after the markets opened. In a short time our objective was met and we were out with 200 pips gain.
|
Over last few weeks one of the currency pairs that experienced some of the most dramatic moves was EUR-AUD. The week before this cross has had the biggest swing in at least 30 years. While things have settled down somewhat over last few days, the moves are still historically big.
We think there is high probability short term opportunity here. We are looking to take a trade to the short side. Sell order was placed at 1.9210 with a target of 1.9000. If we are correct, this should not take very long, since EUR-AUD still moves a lot.
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.
|
|
