Monday, April 19, 2010


The pair hit a high of 1.0693 this morning but has since dropped back to a low, so far, of 1.0646. There's negative divergence on the hourly chart so weakness may continue. While price is currently above the resistance area of last week, the pair appears to be coiling and could drop back to the uptrend line at 1.0525. The 100-daily SMA, which has been serving as rough support recently is at 1.0520 today. Around those levels, then, I'd be ready to go long. If the pair continues to rise, resistance is at 1.0693, 1.0764/88, 1.08, and 1.09.

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.

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