I took partial profits at +85 pips from my short at 125.03. Currently, the pair is finding some support with a low so far of 124.08, exactly where I wrote earlier it would find support. The reason that's important to me is that the pair is "behaving" as it were, according to my analysis. If it should start to bounce seriously from here, it will probably take another run at that 125.25 top. Obviously, the rest of my trade is profit-stopped. Depending on price action, I might take another short if it gets back up to the 125 level.
If it confidently drops below 124, look for support at 123.17, 122.59, 121.89 and 121.47. If the pair clears 125.25, it could have a fairly easy climb up to 126.39. Next would be 127.02 (50% of move down from 134.38 to 119.66).
© 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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