After months of false promises China has finally announced that it is releasing the Yuan from its peg to the Dollar. News that the world has been waiting for? Not so fast! The Yuan is becoming a free floating currency, its official rate is still set by Chinese central bank, so we should not expect any dramatic appreciation any time soon. While this move is almost certainly a nod to please all other countries pushing for it, other important forces are in play, too.
With money flowing towards the USD on global uncertainties, China created a way out for weakening the Yuan in relation to other currencies, should the Dollar become too strong. We can expect Beijing to attempt a juggle between these two extremes and find some middle ground, benefiting China in the process. In other words, this country will continue to manipulate its currency, while appearing to please the demands of the world. Very slick.
Our services closed a very strong month of June on a slower note, only to see good gains in early July. of course, the month has just started so it is hard to say what will happen next. Please see the results below and follow the link for details.
(Sunday 07.04.2010)
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Here are the results for last week:
- Daily Pound lost 274 pips ;
- Daily Euro shed 143 pips;
Follow the link on the right to view details.
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Last week's results.
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In our latest update we were looking for a trade in NZD-USD. Plan was to go long at 0.6890, with 0.7000 objective. The move came, but it was short lived and the direction reversed. We took a loss of 135 pips. Couple of days later we took another upside breakout, at 0.6745. This time it worked, price reached our target for 245 pips gain.
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Trade of the week.
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This time around we are taking a look a currency cross that rarely gets attention here, or outside professional Forex traders. The pair is the AUD-CAD, which represents an interesting relationship between the two leading commodity currencies.
On the intermediate term bases, the AUD-CAD had a nice run up, but has been showing signs of reversal recently. We thing this will continue and want to be on a short side, when latest support is broken. A sell order is placed at 0.8870 and our target is 0.8750, or 120 pips.
We wish everybody 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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