Weekly Review: Missed another opportunity? Read This

Written by: Dime Levov • Monday, May 28, 2012 • 2 min read

• Last updated: Monday, May 28, 2012

Another terrible week for the global markets, but at the same time, a fantastic week for FXML Forex signals system has passed. It is time to review the activity taken by our system:

The most popular currency pair to trade by our system last week was the Euro- Dollar, with 50% of all opened signals. This major pair finished a great week with high profits of hundreds of pips. I hope our followers took advantage of these Euro Dollar signals, like I did. An interesting note: 13 out of 18 Euro-Dollar signals were SELL signals. This could indicate the continuing downtrend of this pair. Take a look at last week's Profit & Loss report (It is available also in the FXML signals page):

If you didn't take part in this pips celebration no worries – open your trading accounts and get into business

Market Review
The markets remain pessimistic towards the Euro's chances to gain a real power in the near future. European leaders' talks about the desire to keep economical stability and to hold Greece in the Euro zone is “all bark with no bite”. It seems as if there is no escape from further decreases. More and more financial gurus like Prof. Roubiny (who forecasted the global crisis a year before it happened) speak now, and say that Draghi should lead a move to remove Greece from the euro-zone. Roubiny recently said in an interview that Draghi should have done it a year ago, and although doing it now will be much more painful and will cost the markets trillions of dollars, it is better late than never. The crisis in Spain continues to worry the markets, and in general, negative data from the majority of the markets in the world, including Japan China and U.K. keep the bearish sentiment towards the next month.

news papers

So what are we expecting in the coming week?

The Greenback continues to show positive signs towards most of its rivals. Its position will be determined by the fear level in the market. As higher the investors' fears of the European instability and economical crisis will rise, as more and more investors will turn to the U.S. Dollar, increasing its position. In case of renewed optimism, investors will be able to take higher risks, turning to the Euro, N.Z. Dollar and Swiss Franc.

There is a little resemblance between 2008 and today in that there are enormous amounts of money (trillions of dollars) being at risk in extremely unstable European economies at this moment (take for example the recent release from Spanish Catalonia).

The Euro-Dollar broke its supports after many months, reaching a year's low (!), but do not let it mislead you if you are looking for a massive correction back up. A bleeding market along with existing panic by the traders brings us to believe that it is just a matter of time before the pair will move down further towards the 2008 crisis levels.

A few fundamental reports on the U.S. economy (like the Unemployment Rate Report) being released in the coming week will back the Dollar up in the case of positive data.

Weekly Signal
The NZD/USD went short on May 21, and I was there to take advantage of it, following a 50 pips SELL signal which closed at the price 1.2595. I started last week's session with a couple of dollars gains. Not bad at all.