It's likely that yesterday's high of 1.2467 will hold for another day or so as long as Euro continues to work out its short-term drop within the larger weekly correction. Yesterday's close was negative and one can see that the recent rally could be an A wave of an ABC correction with B underway. There's negative divergence on the three-hour chart (which will work itself out as the B wave continues).
An attractive target is 1.2172 which is 50% of the move up from 1.1876 to 1.2467. It's also polarity and has recently been an area of support. As a result, after taking partial profits at +100 pips, I just added to my short from yesterday. So I'm short from 1.2379 and 1.2267.
Support is at 1.2250, 1.2200, 1.2167/50, 1.2117, and 1.2045. Resistance is at 1.2355, 1.2467, 1.2525, 1.2673, 1.2701, and 1.2741.
I can't get a chart into blogger which will require rebooting on my part so I'll post it later.
© 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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