AUDUSD has dropped sharply to a low of .9158. My short from .9306 hit its profit target at .9170 for +136 pips.Had I been at my computer I might have moved the take profit target but I was at lunch. However, there are layers of support in here and I'm long now with a small position at .9181. I can set a very tight stop here which is a nice trade. As I wrote this morning, .9202 is the prior downtrend line from November; .9200 is a round number; .9189 is an uptrend line from February; and .9176 is a shorter-term uptrend line.
Should it start to break down, however, I will wait to see what it does as it approaches .9118 (the daily 55 SMA) and, more importantly, .9068, the daily 100 SMA. Those prices are bound to bring out buyers.
© 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.
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