There was a double bottom at 1.3267/83 and the neck was at 1.3591. Yesterday's drop to below the neck at 1.3545 is not completely negative because it could be a throwback prior to gaining strength for another move up. But if that rise is going to take place the pair must get above 1.3692.
It's currently sitting just below a short-term uptrend line on the hourly chart and is curently offered at 1.3604. However, be careful with this pair as it's undergoing cyclical pressure and it could be ready to begin a wave five down. Keep stops tight. If someone went long here, stops should be below 1.3545 which is not all that tight and a very obvious target. Probably it's bettter to wait for additional pullbacks or a break above 1.3692.
Here's the hourly chart:
Copyright 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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