EURUSD—weak

You wouldn't know it by looking at EURGBP but Euro looks weak. What's very interesting, though, is to take a look at the daily chart. I drew the flag pole down to the first daily flag in orange. Then, I duplicated that exact length and ran it from the bottom of the flag pole down. Euro seems to be marching steadily towards that target which is coming in at 1.3382. However, there's bullish divergence on the daily chart so there may be some backfilling coming up.

I had two shorts from Thursday and Friday that both stopped out at +5 pips. I shorted again this morning at 1.3623. The low so far today has been 1.3510. I took partial profits at +101 pips.

Support is at 1.3510, 1.3452/44, 1.3300, 1.3247. Resistance is at 1.3654, 1.3692, and 1.3788. If it reaches that level, I'll be going heavily short.

Here's the daily 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.