AUDUSD—resistance

I did go long yesterday at .8309 and just took partial profits at +180 pips. While I'm loathe to get out of a winning trade, I'm thinking of closing it and going short since it looks as though the correction may be over and the pair might not make it to my price target of .8640 after all.

The pair has reached a high of .8523 so far today, not quite near a strong resistance area of .8785 (fib confluence zone and prior support). It has now fallen back a bit, including falling out of RSI overbought on the hourly chart which can be a good sell signal in an overall downtrend.

Support is at .8405, .8330, .8276, .8163, .8134, .8071/67, .8000, .7932 and .7830. Resistance is at .8523, .8570/83, .8640 and .8793. Here's the hourly 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.