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| What's with the US Dollar?
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Last couple of weeks of 2009 brought on sizeable appreciation of the US Dollar. It rallied strongly against all major currencies, causing wide spread speculation about major reversal in USD. So far 2010 didn't prove it. And quite the opposite. First couple of weeks of new year witnessed another round of sell off in green back. Once again, doom and gloom scenarios abound. From our standpoint neither of these claims is correct. Most likely what is happening in the markets right now, is a period of indecision and consolidation, which can easily last for weeks and even months. Long term direction will be decided by big, important fundamentals, which might not be apparent yet. Currently focus of the markets is squarely on employment numbers and will eventually gravitate towards interest rate. Budgetary and debt issues appear to be secondary, but can become more important in the future. Within next 1-2 months we should be able to discern major trend in the Dollar. For now we consider this matter "under development".
Our services started the year on positive note. After two weeks both services are in the black. They didn't catch any spectacular moves, but end results are respectable, with service producing 92 pips, while other made 105 pips year to date. See weekly results below, and details by following the link beside it.
(Sunday 01.17.2010)
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Here are the results for last week:
- Daily Pound made 66 pips ;
- Daily Euro made 19 pips;
Follow the link on the right to view details.
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Last week's results.
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Our trade from last update was about possible buy in USD-CHF. As indicated before, it is based on daily charts, and can take a long time to happen and complete. So far price is away from our intended entry. Trade itself, however, is still valid. We will comment on it as frequently as needed.
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Trade of the week.
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For this week we are taking a look at another major. This time it is AUD-USD. After huge gains last year, following historic sell off started in 2008, Australian Dollar maybe reaching the extent of its appreciation. Right now there is no evidence for a full scale reversal yet. That would need to be confirmed by daily or weekly chart. Smaller time frames, however, suggest possibility of smaller scale sell off, which, if successful, could be a start of bigger things to come.
We intend to sell AUD-USD using hourly chart. Order is set at 0.9160, with objective at 0.9000. This fairly large for both time scale and currency chosen. AUD has had fairly large daily ranges recently, so it is not out of proportions, but still on the large side.
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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