AUDUSD—sluggish

I blogged yesterday that I would probably look for a long position in AUDUSD and I found one at .8949 which was near a January low, a November ’09 low and polarity. How many clues do you need? It hasn’t been a disappointment as it is currently (7:56 AM EST) up 73 pips at .9022. I took some profits at +70 pips, since it’s bumping up against a short-term downtrend line.

.9091 is the next resistance (daily 34 EMA and prior highs and then .9146 but the pair is sluggish as are many pairs this morning. I’m not very optimistic about the pair but there is bullish divergence between price and RSI. Support is at .8994, .8914, and .8735.

Here’s the 3-hour chart:



© 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.