Market Review (August 6): New Hopes?

Written by: Dime Levov • Monday, August 6, 2012 • 2 min read

• Last updated: Monday, August 6, 2012

Last week ended with sharp increases of most major currencies against the U.S. Dollar. Friday caught investors with fresh hopes for new actions to stem the European debt crisis, after Draghi (ECB chairman) said that soon the ECB will start with its bonds buying program to help the Italian and Spanish economies with their crises. Positive data on the U.S. jobs released on Friday helped to fuel the market risks.

Despite the Euro's rally against the Greenback, investors need to be careful before going long, as we still don’t know if it's a beginning of a bullish trend, or just a short correction before the next storm.

Japanese Yen heavily weakened against the Dollar, after a long period with no trend. The Yen went bearish, due to strong rumors, claiming that the Bank of Japan is about to take easing steps, to help its currency to get over its appreciation.

This week, markets will pay close attention to Fed chairman Bernanke's speeches on Monday, and then on Tuesday. These speeches could throw some light on the U.S. central bank's plans.

Signals Spotlight:
Wednesday, August the first, was fantastic for FXML signals system, which had 100% success, with six winning signals out of six, and 119 pips earnings. Most of the signals that day took advantage of the drop in the markets.

Trader of the Week:
As I promised, every now and then I will present here one of the hottest, most successful OpenBook traders, who showed outstanding results, speaking of gains, wins, remarkable trading strategies and so on.

This time, let's meet Dourom, from France. Dourom gained more than 100% last week, making his 54 copiers happy. He is a medium risk trader, who mostly trades on the Euro- Dollar and Aussie- Dollar.

If you want to take your trading to the next level and join eToro's OpenBook, just click here and open a free account.
You can follow Dourom on eToro's OpenBook platform, by logging in to your eToro account and clicking here.

Learn more on social trading with eToro's OpenBook

Trading Tip:
Although many of my colleagues like to use traditional Bar Charts, I believe that Candlestick Charts are the best option, especially if you are new to the world of Forex. The clear colors and sharp shapes make it easy for traders to follow market trends.