Thursday, April 1, 2010

EURUSD—struggling with resistance

I shorted at 1.3527 yesterday and my stop is at breakeven. The pair reached a high of 1.3562 and, since then, has been struggling with resistance. On Tuesday, the high was 1.3537 so there hasn't been a great thrust upward by any means. It may reach higher in this holiday market with thinner liquidity but it's going to have to close above 1.3569 this week for things to continue to look up for this pair. 1.3543 is 50% of the move from 1.3818 to 1.3267. There is also fib confluence and polarity in the 1.35 area. So you can see it has a bit of a fight if it is to break through.

Support is at 1.3500, 1.3463, 1.3435, 1.3385 and 1.3267. Resistance is at 1.3569, 1.3633, 1.3760, and 1.3818.

Here's the three-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.

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