As you can see on the daily chart, it has been in a slightly, contracting range since April. As a result, it has offered many good trades, simply by going short at resistance and long at support. This time it didn’t make it to resistance. The orange line I have drawn across the chart was significant to me based on various Fib calculations and other ratios. I was off slightly on the timing, entering a bit late at 133.03 but the trade is currently 189 pips in profit. I took some off the table at 132.60 (+43) and I just took at bit more off at +180 pips.
Keep an eye on this pair as it may bounce again from support in which case it would be a long. I’ll post about it here if it approaches that point. Obviously, price behavior is everything and one can’t trade only because a pair reaches support. There is some support on the hourly at 131.08. Here’s the daily 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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