The Euro has dropped sharply from a high of 1.5141 on December 3 to a low of 1.4304 today. For the last hour, it looks as though it may be trying to stabilize here but we’ll have to see. This would make sense since it’s a support zone. Next support is at 1.4192/4209 (late August, early September lows), 1.4141 (Fib confluence zone), 1.4008 (polarity), and 1.3728/48 (May, June lows). Resistance levels are 1.4412, 1.4590, and 1.4684.
I added another short at 1.4385 this morning. I’ve since moved my stop to +10 over breakeven. However, it’s not realistic to expect the pair to continue to just freefall. There must be a bounce in here somewhere. Here’s the 3-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.