Thursday, April 22, 2010

USDCHF—good rally

From its move off of yesterday's 1.0660 support, the pair has reached a high of 1.0758. I just took a bit more profit at +118 pips of my long from 1.0636 since I want to leave my stop fairly wide for now (although of course it's above breakeven). My concern is that the high today is not that far above yesterday morning's high although it has cleared the 1.0693 resistance. It's also above a short-term downtrend line on the hourly chart but is currently toughing it out with a much longer one coming in from April 2009. A drop back to that line at 1.0741 may cause me to add to my long position.

Support is at 1.0741, 1.0694, 1.0660/74, 1.0603, 1.0542/35, 1.0503 and 1.0435. Resistance is at 1.0758/64, 1.0786, 1.08, 1.0876, 1.09, and 1.1060.

Here's the one-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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