EURUSD—sitting on support

Euro is sitting on support with a low of 1.3499 so far today. The fact that it has slowed shows some buying has come in at the psychological level of 1.35. Fine. Let it. With bullish divergence on the hourly chart, it might stage a rally. However, it's doubtful that rally will be very robust with all the negative sentiment around the Euro. In addition, cycle calculations as well as other price target calculations are coming in at the 1.27 to 1.30 price levels.

My short from 1.3686 is still on, of course and I will add additional short positions on any rallies as long as the price action doesn't indicate a change in trend.

Support is at 1.3499, 1.3435, 1.3405, 1.3263, 1.3209, and 130.00. Resistance is at 1.3538, 1.3557/62 (strong), 1.3610, 1.3623/33, and 1.3674.

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.