EURCHF—broke above 1.40

This pair now has three days of higher highs and higher lows, has broken above its short-term downtrend line, and has overcome the 1.40 psychological barrier for a high of 1.4040 so far. A lot of shorts probably covered once above 1.40 so that may have helped th climb up to 1.4040. I am long from 1.3787 and have just taken partial profits at +233 pips.

1.4044 is a resistance level so the pair needs to get through here. The candles on the daily chart have been strong. However, it's still unlikely this pair is reversing trend. On the hourly chart it is moving above 70 on RSI so it's overbought. If it closes below 70 and price is faltering, it may be time to go short. It's not impossible that the Swiss might still intervene so one has to be careful to keep the stops tight.

Resistance is at 1.4044, 1.4179, 1.4309, 1.4480 and 1.4509. If it gets to 1.4509 a lot of people are going to be really amazed. Support is at 1.4000, 1.3985, 1.3924, 1.3870, 1.3816, 1.3774, and 1.3734.

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.