EURUSD—at strong resistance

Euro just touched a high of 1.3543. I shorted at 1.3527. While I've been looking for a stronger rally in Euro, it fell back yesterday after reaching a high of 1.3537 dipping down to 1.3385. It's possible this level will serve as resistance again today. 1.3543 is 50% of the move from 1.3818 to 1.3267. There are also some fib confluence levels here and polarity in the 1.35 area. All this doesn't mean it won't break through but it does mean that shorting is justifiable.

Support is at 1.3500, 1.3463, 1.3435, 1.3385 and 1.3267. Resistance is at 1.3569, 1.3633, 1.3760, and 1.3818.

Here's the one-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.