After it dropped to a low of .8906 yesterday, the pair turned upward again reaching a high of .9038 so far this morning. On the daily chart it’s hovering around its 200 SMA, currently .8957, and it’s not yet oversold. I think there is more upward movement possible and if I was actively trading this week would look for an entry based on pullback on the shorter-term charts (i.e. 1-hour or perhaps even 30-minute). The only cause for concern is that overall momentum is not as positive as one would hope to see in a robust uptrend. Which probably means it’s not all that robust but then what is these days?
Resistance is at .9069, .9100, .9157, .9200 and .9353. Support is at .8957 (200 DSMA) .8923/06, .8896, .8859, and .8738.
Here’s the daily chart. The daily chart can be best understood in the context of the weekly analysis I blogged about yesterday.
© 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.