USDCHF continued its rally up to a high of 1.0851 overnight before falling back to 1.0746. I wrote yesterday that if the pair dropped back to 1.0741, I'd add to my position. This would have been a retest of the downtrend line coming in from April 2009. I was asleep at the time but I did add a small position after I woke up this morning at 1.0774 since it appears it retested it and started up again. The drop back to 1.0746 was also approximately .618 retracement of the move from 1.0674 to 1.0851. On the hourly chart a hammer formed so the low needs to hold for the picture to continue to appear bullish. In addition to taking a second position, I tightened the stop on my first long from 1.0636.
Support is at 1.0746/41, 1.0694, 1.0660/74, 1.0603, 1.0542/35, 1.0503 and 1.0435. Resistance is at, 1.0851, 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.