Monday, May 10, 2010

EURUSD—Weekly chart

If you look at the weekly chart you can see that the pair dropped below its symmetrical triangle in its hefty little plunge last week. Sentiment is very negative on this pair, so negative in fact that it's difficult to believe there isn't a rally nearby. And then of course we have the fearsome French. In the words of the French finance minister': "We will defend our currency and we won't let it be attacked by anyone." Way to go you fearsome warriers. C'est le guerre! We could have used a little of that attitude over here from our Treasury Secretary when our dollar was plummeting.

Back to the chart. I've placed an EW count on the chart which, if correct, indicates the next sustained move will be a 2d wave up. However, the move down may not be complete—it could go back and retest the low of 1.2516.

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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