EURUSD—downtrend line magnet

The downtrend line from May 10th seems to be acting as a magnet with price touching it overnight at 1.2216 and then falling back. Expect uncertainly through the US NFP numbers this morning and perhaps even after that but another push down is possible, especially if it goes below the short-term uptrend line at 1.2161. I'm still short from from 1.2254 and took partial profits yesterday at 1.2168 for +86 pips.

Resistance is at 1.2216, 1. 2334/54, 1.2453, 1.2588, 1.2660, 1.2720 and 1.2803. Support is at 1.2176/61, 1.2132 (50% of Euro's lifetime high/low or 1.6038/.8225), 1.2111, 1.20000 (psychological), 1.1826, 1.1641 and 1.1432.

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.