Friday, February 26, 2010

EURUSD—resistance at 1.3628

The pair touched 1.3628 this morning, the same top it found on 2/24. It's fallen away from that price rather sharply and may reach 1.3541 before rallying again. The broadening pattern on the hourly chart may not be complete but broadening patterns at tops tend to be deadly. So far this one isn't disappointing but I'll move my stop as quickly as I can since Euro bulls have taken hope in their little rally.

The short I had from yesterday at 1.3571 profit stopped out in the rally at 1.3504 for + 67 pips.

Support is 1.3528/31, 1.3452, 1.3444, 1.3361, 1.3247, and 1.3000. Resistance is at 1.3628/40, 1.3692, 1.3706 and 1.3765.

Here's the one-hour 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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