Friday, June 11, 2010

EURCHF—probing higher

I think that given the overall pressure on the Euro and the strong downtrend in this pair that it's unlikely the trend is going to reverse upwards. However it is making higher highs and higher lows on the hourly chart. The overall strategy should be to sell strength, especially as it moves towards 1.3950 or so.

I have two long positions, one from 1.3787 and one from 1.3822. The latter one is up about 50 pips as I write and I am probably going to close that one out. I'm tightening the stop on the other and may close and reverse at some point. I doubt very much that even if the Swiss National Bank were to intervene that they would do so on a Friday, especially as the day begins to get on.

Resistance is at 1.3943, 1.4000, 1.4044, and 1.4179. Support is at 1.3860, 1.3816, 1.3774, and 1.3734.

Here's 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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