Wednesday, March 17, 2010

EURUSD—not a lot of pep

Honestly, this is one sorry pair. Yes, yes, it's being weighed down by all its economic woes, but the pair is aimless. Friday's high was 1.3796; today's high (so far) is 1.3818. The only way to make money since Friday's high was to go short but, if you had done that, the pair only dropped to 1.3640. That's not exactly a lot of pips. It's currently being offered at 1.3776 (7:57 AM EST). To be honest, this was substantial resistance prior to this week so it's not surprising it's faltering here in this little downdraft.

I did go long yesterday at 1.3747 because it bounced from a low of 1.3717 (obviously, I was trading a very short-term chart, 15 minutes to be precise). I had blogged on Friday about how 1.3723 was a confluence level and although it had dropped below that in the interim, it seemed to hold the move this time.

As I wrote last Wednesday, I was thinking it could get to 1.3853 and possibly 1.4039. It's close to 1.3853, true, but as of yet, no cigar. The current, wishy-washy move does look somewhat corrective before another rise but I wouldn't rule out a pullback to 1.3717/29 before it tries for another rally.

Resistance is at 1.3818, 1.3839, and 1.4026. Support is at 1.3747, 1.3717, 1.3657/40, and 1.3551.

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.

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