AUDUSD—good rally

AUDUSD confirmed the double bottom of .8316/17 (two touches since 30 June) when it cleared.8510 yesterday. It faltered just below the June 30 high of .8566 and dropped to .8450 which was a bit surprising (it would have been more positive if .8510 had held) but yesterday's strong performance has the bulls out.

This may be a corrective move in which case waiting until the pair reaches .8640 would provide a good short entry. Beyond that, one would want to be long if possible. However the immediate challenge is to see if the pair can regain .8510. Gee, that was the first resistance when I posted yesterday about this pair. Plus ça change, plus c'est la même chose.

Resistance is at .8510, .8565, .8645, .8737, .8861, and .8895. Support is at .8432, .8316, .8133, and .8067.

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.