After trying a long in the pair this morning and getting stopped out (-30 pips) I shorted at 132.90 as it broke down through support. It’s down 59 pips as I write this and I’ve moved my stop to just above breakeven. It’s at a far stronger support level now at 132.30 so I may lighten my position a bit. The near term potential for this pair is 131.42, the bottom of the range since December on the three-hour chart, and then much lower if you look at the range it has been in since last spring. I’ll make sure to have my deposit slips handy if that happens. Here’s the three-hour 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.