Thursday, November 19, 2009

AUDUSD—Getting ready for another run at the top?

AUDUSD is still in an uptrend with no good signs of a trend reversal yet. But it’s finding resistance at the .9400 level. Momentum is still good on the daily chart. I was hoping it would drop to its daily uptrend line at .9090 where I could buy but its low, so far, has been .9132. Close enough? Maybe. But you have to draw your line in the sand somewhere and mine was lower than that. On the three hour chart you can see a Head and Shoulders pattern. It has broken the neckline at .9155 but has climbed back inside. Action in the lower time frames will tell the story eventually.

Here’s the three hour chart:

© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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