AUDUSD—daily support and resistance

In contrast to GBPUSD which is at tough resistance, AUDUSD is at good support. This pair hasn’t violated any uptrend lines from early 2009 either, and is far above its 200 SMA (currently at .8522). Yesterday’s daily candle was a doji—this hints at indecision. A close below this doji would be bearish. The pair is currently at .8990 and I may look for a long position. Tight stops are a necessity.

Support lies at:

.8937/38/48—Jan. low to date, yesterday’s doji low, polarity, Nov. ’09 low, today’s low)
.8914 (late March ’09 up trend line and polarity)
.8735 (December low)
.8522 (200 EMA)
.8311 (early March up trend line)

Resistance is at:

.9089 (34 EMA)
.9195 (polarity)
.9322/30 (Dec. ’09 and Jan. 10 highs)
.9406 (Nov. ’09 high)



© Dianne Fecteau, 2010. 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.