EURUSD—stalled again

Euro reached a high of 1.3407 this morning where it again appears to be stalling under some tough resistance—fib retracement level as well as confluence. It needs to decisively clear 1.3410 to give this rally some legs. Since the pullback so far is weak, it may be getting ready to do so. The tiny short I added at 1.3354 yesterday stopped out at breakeven. My short from 1.3533 is still in play and will be until threatened by the pair clearing 1.3410. It didn't happen yesterday but maybe it will do so today. I'd be happy to pocket the profits and wait for a better shorting level.

The question, I suppose, is why it's stalling. I am never much interested in why—it's far better to trade the charts and leave the fundamental traders to their time-killing, wasted efforts—but from a technical viewpoint it comes down to trader indecision. The problems of Greece, the downgrade of Portugal, the uncertainty in general, are all taking their toll. If you add the technical cycle pressures the Euro is under, it becomes easier to understand this inability to make a decisive move up.

Support is at 1.3325, 1.3267, 1.3209, 1.3200, 1.3127, 1.3092, 1.3000, and 1.2885. Resistance is at 1.3402/09, 1.3425, 1.3535, 1.3561, 1.3670, 1.3724, 1.3755 and 1.3818.

I'll post a chart when there is something new to note.

© 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.