World financial markets never sleep, especially when it comes to bad news. While America was closed for business for Thanksgiving celebration, one more credit problem unfolded. This time in Dubai, the second largest among seven of United Arab Emirates. Over last few years Dubai has been in the midst of real estate boom, trying to reinvent the small country into tourist and banking destination. Seemed like the good times would not end. Dubai World, the state owned largest developer, shocked investment community by asking creditors for a ?standstill? agreement as it negotiates to extend debt maturities. In other words, they can't service the loans taken to fuel rapid expansion. While not a done deal yet, it would appear the real estate bubble is ready to burst, very likely followed by other ones. All currency traders will have to follow developments , as they are likely to effect Forex trading, even more than they already did. Our services had a mixed week, even if it was short for both of them. One had losses, while the other registered respectable gains. See the results below and follow link for details. Also, we updated our complete annual results pages including performance graphs, for both Daily Pound and Daily Euro. (Sunday 11.29.2009)
During our latest update we suggested a short trade in AUD-JPY. It was a continuation in our search for weakness in Australian Dollar over previous few weeks, which included a loosing trade in EUR-AUD. More about that pair farther down this page. Our plan was to sell AUD-JPY at 82.91, looking for a move down to 81.90. Market cooperated and we made 101 pips. Good trade.
After a loosing trade in EUR-AUD couple of weeks ago, we remained keen on buying it again an a high probability breakout. After some wait time, market created a set up we were looking for. Entry was at 1.6100, with 200 pips objective. This is precisely what happened and our target was met. All said we are happy with AUD trading of late.
The new crisis, at least potential crisis, in Dubai, created some serious moves in currencies. US Dollar and Japanese Yen benefited from them. Especially JPY moved hundreds of pips on Thanksgiving. It appears a little overdone, even if all yen crosses already bounced significantly. We expect another swing up, before the down trend resumes. This brings us to GBP-JPY. Our plan is to buy it at 143.60, and try to stay with it to 145.00. With current volatility it shouldn't take long to reach the objective, providing entry level is breached.
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 email@example.com .
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