Friday, March 26, 2010

AUDUSD—broke uptrend line again

AUDUSD broke its uptrend line from Feb. 5 for a second time today while it dropped to a low (so far) of .9043. This is below yesterday's low of .9066. There is still some bullish divergence on the three-hour chart but this doesn't look good. In addition, it's building up layers of resistance. Needless to say, I'm still short from .9185. at .8578.

Support is at .9043, .9020, .8985/73 (strong), .8929, .8871, .8801, .8788 (strong) and .8578. Resistance is at .9067 (strong), .9120/40, .9198, .9252, .9330, and .9406. I think there's probably zero probability we'll be seeing .9406 anytime soon but never say never.

Here's the three-hour chart. Notice RSI coiling.

© 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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