Thursday, May 13, 2010

EURUSD—1.2562 low this AM

The Euro is falling, reaching a low of 1.2562 this morning (so far). I have one position left from 1.2996 and I just took additional partial profits at +404 pips. My second one from yesterday stopped at just better than breakeven (had I been actively trading yesterday I would have reestablished it but that's the breaks).

I've tried a new short-term uptrend line on the 3-hour chart which is coming in at 1.2561 after the low this morning. If that doesn't hold, expect to see 1.2513/16. Beyond that is 1.2456 and then 1.2329. However pairs don't fall forever in a straight line and the Euro has had more than its share of falling recently. At some point there will be a rally. Such a rally will probably be another shorting opportunity as the French finance minister's words ("We will defend our currency and we won't let it be attacked by anyone.") are looking just a tad out of touch. Any rally will find resistance at 1.2684, 1.2739/60, 1.2803, 1.2880, 1.2963 (Fib confluence), 1.3038 and 1.3094 (Monday's high).

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.

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