Yesterday I blogged I went short at.8679. I took some partial profits at .8647 for +32 pips because it seemed to be slowing its descent. The pair went on to drop to a low of .8608 and then rose quickly before I woke up this morning to stop me out at breakeven. The rise seemed to be news related although Greek debt problems and the UK having a lower than expected GDP hardly seem newsworthy. I just reshorted at .8675.
Why did I short again? I pointed out the triangle on the daily chart yesterday where it was nudging the triangle's lower line. By sinking to .8608, it clearly broke that lower line although not by much. Thus, its bounce may have been a possible retest before continuing down. In addition, .8700 is going to serve as resistance now. We'll just have to wait and see what it's going to do. I moved my stop to breakeven already—if it's going to drop it will do so soon.
Support is at .8631, .8603, .8500, .8456 and .8400. Resistance is at .8686, .8700, .8744, .8865, .9026 and .9130/50.
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.