Tuesday, February 9, 2010

EURUSD—weekly chart

It’s been a while since I posted a weekly chart of the Euro. Wave c of 2 appears to have completed at 1.5144 in November so, as I’ve written several times, we’re in wave 3. Third waves are fast and strong and I think that’s a fair characterization of the market recently. The pair has been correcting from its low of 1.3586 on Friday to a high of 1.3746 today. There’s room for additional correction but the pair looks weak. I can’t see that it can get above 1.3775 but its vision may be better than mine is. Should it climb above 1.38 – 1.3850, I’d probably lighten my short from 1.4083. I just added another short position at 1.3711.

Support is at 1.3586, 1.3432, 1.3361, and 1.3263. Then there’s the big 1.30, ha-ha, which would be interesting (and profitable). The daily uptrend line from last Oct. 2008is at 1.2841. Resistance is 1.3750/75, 1.3800, and 1.40. Should we see 1.40, I think shorting would be a grand idea.

Here’s the weekly 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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