It's near an uptrend line at 1.0728 so there could be a move a bit lower. The 1.0728 is just below the .618 retracement of the move from 1.0674 to 1.0851. If that uptrend line holds then all is good for a push against the 1.0851 high it made last week. If it gets to 1.0851 again and begins to falter then I may reverse. There's lots of back and forth in these markets the last several weeks. Of course once we adjust to that and begin to expect it, things will change. Be ready. The 1.0684/1.0722 area is a key one.
On the weekly chart you see price action narrowing as you do on most pairs. Until it breaks out of this range of 1.0435 to 1.0900 there's not a lot to say about it except that momentum is generally bullish. One can get off some nice trades within this range if that's where it continues to stay.
Here's the weekly 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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