Wednesday, May 26, 2010

EURUSD—failed rally

Euro rallied to 1.2388 yesterday (resistance) but has fallen back, touching a low of 1.2248this morning. The remainder of my short from 1.2387 profit-stopped at 1.2337 for +50 pips. I shorted again yesterday at 1.2387 and took some partial profits earlier this morning at +65 pips.

The one-hour chart shows the Euro broke beneath both a price and RSI uptrend line so the pair is still weak. While I think sentiment will ease up at some point, it doesn't seem to be doing so yet and the pair can't get a good rally going to save its life, it seems. I'm getting ready to add another short if price so indicates in the next few minutes.

Resistance is at 1.2301, 1.2388, 1.2416, 1.2574/99, 1.2673/99, 1.2740 and 1.2803. Support is at 1.2248, 1.2135 (50% of Euro's lifetime high/low or 1.6038/.8225), 1.2127, 1.1826, 1.1641 and 1.1432.

Here is 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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