This pair has continued merrily down as money flows to the UK. I have four short positions at .8340, .8258, .8168, and .8114. I may close the one at .8258 and book the profits.
.8107 is potential support (Nov. 2008 low) with a clear possibility of .7900. However, if you're not already in this trade, wait for a bounce. It has to come eventually. Resistance is at .8130, .8225 and .8275/85.
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.