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The Dollar Gains Reprieve - My Trade Clocked +245pips Today..

By Benny Nardino | May 24, 2006

The GBP/USD traded sharply up this morning to retest 1.8860 from the low of the Frankfurt open @ 1.8727 only to head southward again.

None of the better than expected CBI report mattered today. The latest weakness in the UK equity market also contributed to the ’southbound train’ movement.

The euro surrendered its early gains made after a closely tracked measure of German business confidence was stronger than expected, suggesting the euro’s recent appreciation hasn’t hurt Europe’s largest economy as much as some had feared.

The U.S. new-home sales data support the case for “further rate hikes,” The Interest-rate differential also helped buoyed the dollar across board today.

On the contrary, as a currency speculator, it does not really matter where it goes as long as the market is never still. All I am interesting in is taking the right entry and exit. Having these factors in mind, I should say, “Today was a great trading day” especially with GBP/USD and the EUR/USD.

I enjoyed a good +70pips ride in the morning, I took a position this morning @1.8765 on signal. Having exceeded my daily target of +53 pips I was prepared to wait and see what happen on the US open. I missed the breakout @1.8825/35. As result, I was anticipating a pullback which happened arounnd 8742/85. I took the southbound position @1.8771. Using my ‘trailing strategy’, TS I took a further position on the EUR/USD @1.2822. I exited both positions @ 1.8660 and 1.2758 respectively. A further +106 and +69 pips were accummulated for the day. On today’s trade alone I gained (70+106+69) which amounted to +245pips. After thre days of trading I am currently up by (245 +44+77) +366 pips on the week. At the moment I am up on my weekly target by +66pips. Not bad at all.

How did you do in your trades? Please leave me your comments and share your thought.