Wednesday, April 14, 2010

USDCHF—at intesting levels

I placed a small long trade at 1.0538 this morning, in part because the pair is near an interesting support level. That said, the best supports are near 1.0435 (the 4/1 low) and 1.0467 (the 200 daily SMA). 1.0498 is the 100 SMA. So if I get stopped out I may try again in the 1.04s.

Topside pressure is also coming in from a number of moving averages. The 21- and 10-SMA are at 1.0623/31. The 13- and 55-EMA are at 1.0613/10. This means I'll lighten my long considerably as it nears those levels—if it nears those levels. The USD is trying to find a direction so we'll have to see.

Here's the 3-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.

No comments:

Post a Comment