Trading Day 10/20/06

Odd opening this AM. GBP up and EUR down. These currencies have been shadowing each other closely all year so one of them is likely to reverse and catch up with the direction of the other.

After looking at the activity on JPY, CHF, and CAD, I concluded that the EUR would more than likely move in the direction of the GBP so I went long the EUR. It did ... and I picked off 12 pips in two trades.

Then I stood aside for a bit until both the GBP and EUR acted 'tired'. When USDJPY spiked up it was pretty clear that USD was strengthening ... so I shorted EUR and picked up another 12 pips.

Another good trading day with very little stress. It's Friday so I plan to stand aside early.