Yesterday I went long at .9041. I took some profits this morning at +50 and have moved my stop to breakeven +5.
As I’ve pointed out earlier this week, this pair is showing some weakness. However, given its strong, bullishness, I wouldn’t expect it to just roll over without a fight. After the low early yesterday morning, it looked as though it was trying to stabilize, Note, today, that it seems to have backed away from resistance at .9114. The candles developed upper shadows. This hints the market was rejecting higher prices. If you study that line on the hourly chart, I’ve placed arrows where price has touched it and retreated from it several times. It’s polarity. It’s also the .618 retracement of the recent move down. Let’s see if it holds as resistance again. If it does, a short might be in order. This means I may reverse when stopped at breakeven, or earlier, if other clues present themselves before then. However, remember we’ve had four down days so a bounce may be at hand.
© 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.