AUDUSD—milling about

AUDUSD is milling about in confusion. On the hourly chart, it has broken below a very short-term trend line but you can see it doesn't want to let go and drop further. That is, the Aussie bulls are hanging in against the bears and the result is stalemate. One side will take over at some point and at that point, one should see some definitive moves. My short position at .9240 is still on with its stop better than breakeven. The low since I took that position was .9180. I'm not overly confident that this pair is really ready to drop so I took some partial profits at +37 pips. If it breaks .9180, I may add another short, however. There is some negative divergence since the low of .9180 so this may happen.

Support is at .9180, .9150, .9124, .9096, and .9050. Resistance is at .9230, .9252, .9330, and .9406.

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.