AUDUSD—rallying

Yesterday's market action did take out the remainder of my short at .9153 for +32 pips. I then went long at .9156. I took partial profits at +44 pips but I'm not moving my stop to breakeven just yet because the uptrend line is coming in at .9154 and it may retest it. As I wrote yesterday, the pair needs to get through .9200 with a definitive close before I see it as resuming its uptrend. It hasn't happened yet although there have been two touches of .9212 and .9214 in the last few hours. If it starts to falter at .9252 (a prior high), then a reverse may be in order.

Support is at .9194, .9160/54 (strong), .9067, .9002, .8985/73 (strong), .8929, .8871, .8801, .8788 (strong) and .8578. Resistance is at .9214, .9252, .9330, and .9406.

Here's the three-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.