Wednesday, June 16, 2010

EURCHF—pullback below 1.40

Touching a low of 1.3888 so far today, the pair has pulled back to dance on its short-term downtrend line that it rose above yesterday when it broke the 1.40 barrier. My long from 1.3787 profit-stopped out at 1.3917 for +130 pips. I haven't gotten back in and want to study price action a bit longer before I make a decision. Certainly, another break above 1.40 might convince me of a long.

Yesterday was 4th day of higher highs and higher lows but yesterday was a doji candle that is known as a gravestone and this is bearish. The rounding type of top on the three-hour chart (although a doji poked its head above) is also bearish. It's not impossible that the Swiss might still intervene so one has to be careful to keep the stops tight if shorting.

Resistance is at 1.4000, 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 1.3985, 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.

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