The Euro has gotten above its little range of between 1.1876 and 1.1992, reaching a high of 1.2030 so far this morning. My long from 1.2167 was profit-stopped out at 1.2027 for +140 pips. My long from 1.2061 was profit-stopped out at 1.2008 for +53 pips. I may go long, depending on price behavior in the next few minutres.
The rally is well deserved after the Euro's tumble. However, the pair must maintain its push into the 1.20 area and hopefully get above that. It's positive that at least so far it has managed to push through the 1.1992 level where sellers would have entered. Momentum on the hourly chart, as measured by RSI, is pushing towards 70. If it holds you can expect higher highs but any longs should use tight stops. I do not believe this is the end of the Euro's decline but it does need a rally.
Resistance is at 1.2080, 1.2153, 1.2216, 1.2326, 1.2453, and 1.2885. That's quite a gap between 1.2453 and 1.2885 but there's no need to calculate shorter term resistance in between those two unless the Euro can climb higher that 1.22 or so. Support is at 1.1992, 1.1876/60, 1.1800, 1.1638, and 1.1500.
Here's the one-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.