AUDUSD—Still in an uptrend

It has been a while since I’ve blogged about AUDUSD. I’ve been in and out, mostly long. I bought two positions on yesterday’s dip. That’s a no-brainer, right, to buy a dip in an uptrend? In any case, I’m profit stopped just above breakeven and while the pair doesn’t seem to be robust, it’s also not giving clear signals that its uptrend from March is over.

A look at the three-hour chart shows it formed a hammer (seems to be the candle du jour) which held the dip. (My two trades, represented by the triangles, are blocking the view of it). The four candles at the low all had longish, lower shadows, terminating at the same level, which hint the pair is rejecting prices at that lower level. Hammers are stronger signals if they form at support. This is near the blue support line I drew.

I still have calculations showing this pair could make it to .9720/50 but it is having a bit of a struggle. As usual, we’ll have to see. By the way, I noticed this is my 100th post on the blog. I guess by the time you do something a hundred times, it's a habit. 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.