Wednesday, June 30, 2010


I have one small position left from .8340. I closed .8258 for +170 pips. The last two (from .8168 and .8114) profit-stopped out at +65 and +10 pips respectively.

The pair finally began a rally overnight getting up to a high of .8180 this morning after yesterday's low of .8068. Sellers are coming in, obviously, because .8180 was the June 24 low so it's stalling here. I'm holding off a bit because momentum, as represented by RSI, is still strong on the hourly chart. It needs to close below .70. At that point, whether price will still be at a decent level remains to be seen. It would be ideal if it could work its way up to the resistance at .8225/40. It would make much sense to short there. But we'll see.

Looking at a daily chart, yesterday's low could be the end of wave three. There's also slightly positive divergence on the daily chart.

Resistance is at .8180, .8225/40, .8285,.8300, and .8400. The latter should cap any rallies. Should the pair head down, .8107/00,.8068, .8000 and .7900 are all support.

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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