EURUSD is has finally descended to the bottom of the daily channel. This could be a reasonable level to buy and I am doing so with a small position. I expect there will be some sort of a bounce. This level is also polarity—it has served as both support and resistance for price. If the pair should definitively close below this uptrend line….well, let’s just say that given the overall weakening, I’d be going short.
What’s remarkable on the daily chart to me is the descending level of RSI. I have blogged frequently in the last month that momentum has to drop for price to drop and it finally appears to be doing so.
Obviously, more study needs to be done on the shorter-term charts and I’ll post more, later. Here’s the daily chart.
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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.