Yesterday's high was 1.5434 but the little rally that got it there and that has taken place since the subsequent low at 1.5333 is nothing but anemic. The pair also broke the short-term uptrend line I drew on my hourly chart yesterday. It's shown in blue on the chart below with the new uptrend line in black.
What the market has done, though, is confirm 1.5333 as a good suport level. Yesterday, I identified support at 1.5336 so the fact the market has respected that level again tells us something. What is it that it tells? First, if it breaks below there, then one can probably expect lower lows. Second, the low is higher than the previous day's low of 1.5192 by a substantial number of pips.
My long from 1.5358 is stopped at just better than breakeven. If it's taken out I'll be watching to see if price breaks that support of 1.5333. If it does, I'll probably short. If it looks as though it's rallying I may take another long.
Resistance is at 1.5416/34, 1.5453, and 1.5523. Support is at 1.5370, 1.5333, 1.5291, and 1.5192.
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.