From its low of 1.5192 yesterday, the pair climbed to a high of 1.5434 earlier today before dropping back to 1.5336. That price was where it touched the short time uptrend line on the hourly chart and I took a long position at 1.5358. On the 15-minute chart it made a nice solid hammer so if price dips below that point it's a sign of weakness. I might consider reversing at that point. What I don't like about the chart is that on the hourly, the price action looks corrective possibly beginning leg C of an ABC correction.
Bottom line is that this is going to require USD weakness to get anywhere with this trade. While I have some price projections up to 1.6160 and beyond, I'm not sure that's going to happen anytime soon.
Resistance is at 1.5416/34, 1.5453, and 1.5523. Support is at 1.5336, 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.