AUDUSD—struggling with resistance

AUDUSD dropped to a low of .9136 yesterday before rallying.So far, at least, the layers of support I've blogged about seem to be holding although it's a bit dicey at this moment as to whether they'll continue to do so given that the pair seems to be struggling with getting through .9249. As a result I've shorted at .9232 with plans to stop and reverse if the pair can get any legs for a rally.

Support is at .9200, .9157, .9136, .9071 (100 SMA), .9002 and .8927. It's likely that if it approaches its 100 daily SMA there will be buyers coming in. Resistance is at .9250, .9313, and .9364. Unless sentiment changes, anything over .9300 will bring out sellers. However there is positive divergence on the three-hour chart.

Here's the three-hour 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.