On the daily chart, the 200 SMA seems to be providing support for this pair since it bounced off it at 1.4407.
Last week I wrote about the bear flag on the daily chart that is an upward sloping channel for those who prefer to see the glass half-full. The top of this is now at 1.4560. Regardless of what you call it, the pair needs to break above it in order to suggest buying. Conversely, a break below the bottom of this would suggest selling. While I am leaning towards shorting this pair, I prefer to wait a bit to see if I can find a clearer signal. One thing I’ll be watching is momentum. 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.