Taking a look at the hourly chart, you can see positive divergence between RSI and price. That, combined with the attempt to base, makes a long look more attractive but if I do so, I'm keeping the stop above 1.34. That's very little risk but any quick move could take it out and then you need to decide whether to get back in again. The conservative trader will stand aside for now.
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.