I still believe it's possible the pair can get to.8640 but momentum is the key. RSI showed the pair becoming overbought and dropping out of that on the hourly chart but, so far, price hasn't aggressively followed. Adding to longs if the price retreats to the uptrend lines is probably OK as long as tight stops are used.
Resistance is at . 8551, .8578, .8610, .8640 and .8700. Support is at .8463, .8375/62, .8310, .8285, .8163, .8067, .8000, .7932 and .7830.
Here's the three-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.
When exiting, the methods to mainly use support and resistance lines, reminds me of Tony Oz's. A trader's methods is somehow difficult for another to apply, which is the matter of trading psychological aspects.
ReplyDeleteosamu
Hello again, Osamu. While I sometimes use support and resistance lines to exit, it's not my preference. I have good results calculating price targets in some cases but I also like letting the trade run, moving my stops and taking profits along the way. When you do this you maximize your profits as it can catch trends. In the case of a sideways market, exiting at support and resistance can be useful.
ReplyDeleteDianne Fecteau, CMT