EURUSD—new low

Euro dropped to a new low of 1.3202 yesterday although it then rallied back to a high of 1.3346. I wrote yesterday that I'd expect to see more buying the closer it gets to 1.33 and that appears to be what happened. The weekly picture isn't pretty with a low it hasn't seen since May 2009. There is, though, some positive divergence on the daily chart.

I'm still short from 1.3392.

Support is at 1.3202, 1.3128, 1.30 (big psychological), 1.2965 and 1.2863. Resistance is at 1.3346, 1.3422, 1.3447, 1.3525, 1.3585/91, and 1.3692.

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.