 | Good day!
Welcome to our weekly update. In our view story of the week was certainly NZD or more precisely, the continued run in that currency. New Zealand central bank raised it's short term interest rates to 8%. After some hesitation, markets responded strongly, lifting NZD to lofty levels. Moves were strong, especially on Friday when NZD moved 700 pips against GBP, 500 pips against EUR and 300 pips against CHF. Strongest daily moves in years. Not so much against USD. All of this is in a sharp contrast to few months ago, when, after interest rate raise to 7.75% NZD not only didn't gain ground, but in fact went into a couple months long slide.
Why are we focusing on NZD here? Much to our detriment, we found ourselves on the wrong side of the fence here, that's why. Our "Rainbow" service took some losses this week, in large part because of our position in NZD. On paper this has been the worst week since inception of the service. That's a little deceiving, because we've had worse losses before in open positions. On a bright side, very low leverage we employ here, keeps the losses, in terms of money, to a low level. At any rate, that's how trading goes.
Our remaining services had a good week for a change. Both GBP and EUR had good, directional news during last few days, which resulted in our mechanical systems making some good gains. "Daily Pound" and "Daily Euro" keep chipping away in a slow but methodical fashion. See the results below. |
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Here are the results we achieved last week:
- Rainbow lost 356 pips in closed trades;
- Daily Pound earned 174 pips;
- Daily Euro made 82 pips for the week;
Follow the link on the right to view details |
Last week's results.
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Here is our trade from last week. Premise was to sell EUR-USD at 1.3380 with a target of 1.3300. Price moved above previous resistance so we cancelled the trade from our service but decided to take for the consistency of these pages. Here it is, we are in a trade and target remains the same, 1.3300. |
For this coming week we are taking a look at EUR-GBP. That's a cross we trade very rarely, as it doesn't move a lot in terms of pips. However, pips are of bigger value and one can always increase the size.
Our set up is to go long at 0.6818 with a target of 0.6860. Both of these currencies are "soft" at the moment but there is always some interaction between them.
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 . |
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