AUDUSD—above breakout point

After its break above the daily downtrend line yesterday, the pair reached a high of .9289 before retracing almost .382 to this morning's low of .9249. As long as it stays above the downtrend line, currently coming in at .9229, it should stay poised to rally further. I took a small long position this morning at .9264. As with the other pairs, there are some conflicting signals on the charts so tight stops are a necessity.

Support is at .9242, .9229, .9202 (strong), .9166 and .9131. Resistance is at .9289, .9330, and .9406. A lot of bulls are waiting for that .9406 but they may have to wait a while.

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.