EURUSD—way low

Well, well. Reversing was certainly the right thing to do yesterday. My short is from 1.3034 and I just took partial profits at +209 pips. With a low so far of 1.2804, it has blown through all the support levels I listed yesterday and, quite frankly, I'm a little stunned there hasn't been some sort of rally. It hasn't been this low since March 2009. Should the pair decide to rally, 1.2885 will be resistance, then 1.2907, and 1.3050. There is some positive divergence on the hourly and daily chart.

Support is at 1.2755, 1.2700, 1.2660, 1.2600 and 1.2456.

I do have calculated price targets down to 1.2728/23 and then to 1.2660. Beyond that it could dip to 1.25. When I calculated those back in February they seemed laughable but there you go.

Here's the daily 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.