We have seen very volatile Yen for some time now, and last week was no exception. Early on there were some truly astounding price swings, especially in GBP-JPY, EUR-JPY and AUD-JPY. Hundreds of pips daily moves. It all settled down somewhat in the mid week, only to resume on Thursday and Friday, which was another massive day. We were involved in JPY trading to some degree with our trade of the week and you can see the result by scrolling down this page. In our opinion, we will continue to experience volatile Yen next week as well.
Dollar continued to strengthen, at the expense of every other major currency. Since this move started, USD has gained over 2000 pips on Euro. That pair fell from over 1.6000 to just under 1.4000. While this is a huge move, especially in such a short time, everybody should understand that this was long overdue and mustn't be treated as some surprise.
Reserve bank of New Zealand, cut interest rates by 0.50%, surprising many observers. NZD fell under 0.6500 on the news, but rebounded sharply together with other currencies. We feel NZD sell off is a bit overdone. Don't be shocked to see a rally here, and AUD also.
Our systems were a mixed bag. One had positive performance, while the other had a loosing week. See the results below, and follow link for details, as we updated website, including performance graphs for our systems.
(Sunday, 09.14.2008)
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Here are the results for last week:
- Daily Pound lost 20 pips ;
- Daily Euro gained 151 pips;
Follow the link on the right to view details.
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Last week's results.
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We participated in some of the large Yen moves. Last week we entered a buy in AUD-JPY at 87.98. We didn't have to wait long. This trade was settled in early trading on Sunday. Our target of 90.00 was reached very fast for a gain of 202 pips.
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We also entered into GBP-CHF position. If you recall, we've been following this pair for couple of weeks. This trade also happened to be settled very fast, within few hours. We entered at 1.9778 with a target of 1.9955. The gain here was very nice 177 pips.
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We have seen huge moves just about everywhere over last few days. While, in principle, this is great for trading, it also makes very difficult to choose new trades. Charts are distorted, both targets and stops being magnified through the prism of most recent swings. With this in mind, we are taking a look at EUR-CHF as our trade of the week.
This pair moves a little less than most other popular crosses, but we think there is a good trade opportunity here. Our intention here is to buy it at 1.6120. Objective for this trade is 1.6220, or 100 pips. Bear in mind we are using intermediate term charts, so this trade can easily last 2 weeks or so.
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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