The Euro has bounced a bit which I expected when I wrote late yesterday that I was taking profits. I still have part of a short on from 1.4074.
The pair fell to a low of 1.3912 last evening. Today it touched 1.3987 before falling back. I am looking to short again but it needs to reach an attractive level before I do so. The resistance levels of interest are:
1.4000 (round number, prior support, and a short-term downtrend line)
1.4028/52 (Jan 28 highs and prior resistance)
1.4085/87 (prior resistance)
1.4150/70/94 (prior resistance and Monday highs)
That’s quite a wide range which means each level must be assessed individually or you need to set wide stops. I may try a small short at 1.40. The candles on the hourly chart look indecisive so it may not make it.
Support is at 139.12/22/42 (last night and today’s lows and 1.3914/19 is polarity), 1.3888 (calculated target), and 1.3800 (round number and support). Below 1.38, there are additional calculated targets based on the daily bear flag and other characteristics but there’s no need to think about them right now.
Here’s the hourly 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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