EURUSD—bouncing

Euro is trying to recover and in doing so took out two of my three positions. Yesterday I said they were from 1.3659 and 1.3568. That was incorrect. The original one is from 1.3659 and those two were from 1.3568 and 1.3570. In any case, they're out at +13 and +12 pips respectively. The original is still intact.

On the three-hour chart you can see Euro forming another one of its "stair steps" as it has been doing all along in its tumble from its November high. If it gets back to the top of this one that means 1.3708. However, there's nothing impulsive about its up moves—they all continue to look corrective and this pair will more than likely sink lower. There's a long-term cycle playing out here, too, if you're into cycles. I'm not sure I am but enough people are that it bears looking at them.

Support is 1.3497, 1.3444, 1.3361, 1.3247 and 1.3000. Resistance is at 1.3572, 1.3692, 1.3706, 1.3750/88 and 1.39. Doubtful we'll see anything close to 1.39 but you never know. There's bullish divergence on the three-hour chart below:
















© 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.