Close Open Orders: 2007-05-25 10:32

US Existing Home Sales for April came in at -2.6% to 5.99M. We saw a revision in March up to 6.15M. The Greenback sold off, but the move was minute probably due to low volume ahead of the holiday weekend in the US. Our order to go long is a bit out of range of today's volatility levels and may act as a resistance point if it is reached as Cable rises.

So, we will close all open orders. No trades for today...oh, well. There's always an opportunity around the corner! I hope everyone has an awesome weekend!

Trade Update: 2007-05-25 09:40

UK quarterly GDP came inline at 0.7% and the yearly number was revised up to 2.9. The pair continued to trade within a range and our trades were not triggered. We do have US Existing Home Sales coming up in the next hour. This report may help support yesterday's huge New Home Sales data and we may see the Dollar rally as sentiment begins to change to dollar positive. We will keep our orders open for this report. Good luck!

Trade Idea: 2007-05-25 02:05

Last trade of the week! So what's in store for us???? Well, the big event of the Euro session will probably be UK quarterly GDP at 4:30 am EDT. Forecast numbers are projected with the previous number at 0.7%. Of course, if there is a surprise we will probably see a pop as the pair is consolidating at the moment in a tight 40 pip range.

Technically, the pair is trading at the 240 WMA on the 4hr chart and bulls are finding resistance between 1.9850 to 1.9900. Stochastics look like they are beginning to tread lower out of overbought territory. These patterns are making a strong case for a short trade. Also, recent US data has been positive, especially with New Home Sales rising the most in 14 years, we may see a short term dollar long sentiment.

Now, if we do see stronger UK GDP, we may see Cable rally back up to 2.00 ahead of the US data today.

For now, we will put on a straddle play to take advantage of any UK GDP surprise, and a little bit later we will get ready for the US Existing Home Sales report at 10:00 am EDT.

Long half position GBP/USD at 1.9900, stop at 1.9860, pt at 1.9980

Please remember to never risk more than 1% of your account on any given trade. Adjust your position sizes accordingly.

Good luck and good trading!