Friday, January 8, 2010

EURUSD—doing absolutely nothing

This pair is at the bottom of the daily bear flag I’ve been writing about this week Go long? Go short? Whatever, because the market is treading water, waiting for the release of Non-farm payroll this morning. This is the way it usually goes with these major news releases.

The 200 simple moving average (SMA) that I wrote about yesterday is at 1.4252 this morning, so its underneath the flag boundary at 1.4303. Both are lower than where the pair is currently at 1.4327 at 4:20 AM EST and both are significant support levels. The flag is big enough that if it bounces from the bottom one could get off a nice trade. Resistance is at 1.4255, 1.4447, and the upper boundary at 1.4500 which is also a psychological, round number level.

Probably best to avoid trading until after the news comes out. Here’s the daily 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.

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