EURUSD—possible rally

The Euro has dropped to a low of 1.3403 where it appears to have been caught by support. If 1.3403 doesn't hold, it's possible it may return to 1.3267. I took a small long at 1.3407. As seems to be the rule this morning, the stop can be tight so it is worth a try especially with the slight positive divergence on the hourly chart. These are fairly tricky markets so far this week so caution is advised in the form of tight stops.

Support is at 1.3385, 1.3347, and 1.3267. By the time it got down there I would have probably stopped and reversed. Resistance is at 1.3439, 1.3477/86, 1.3538/42 (strong) and 1.3591.

Here's the one-hour 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.