EURUSD—weak

My original short from .13659 profit-stopped out at 1.3619 yesterday for +40 pips. Another case of the market then immediately reversing but that's OK. It's the name of the game sometimes and says more about my being slightly off on my calculations than anything else. I also shorted again yesterday at 1.3571 and that trade is intact and profit-stopped.

I'd like to take another short position but it's a matter of finding the entry. The pair reached a low of 1.3452 which is very close to the prior low of 1.3444. It has since rallied a bit, reaching a high of 1.3517 this morning and possibly heading to 1.3548. If it gets there that's my short entry. Otherwise, I may need to wait for a break of the current short-term trend line on the hourly chart or 1.3444. Price action will let me know.

Support is 1.3452, 1.3444, 1.3361, 1.3247, and 1.3000. Resistance is at 1.3517, 1.3548, 1.3572, 1.3692, and 1.3706.

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.