I'm still long from .8593. I took partial profits at +130 pips.
There are two things of interest on the weekly chart. First is the 21 EMA at .8773 which seems to be serving as resistance. The other is the small rectangle within with the AUDUSD is trading. The resistance from this is .8860. Since the hourly chart appears to show the pair nearing the end of a C wave (I blogged on this last Thursday and there has been little movement since then) the .8861/81 could be the target. This makes a lot of sense given that .8835 is 1.618 of the A wave on the hourly chart; .8868 is .618 of the .9364 to .8067 move; and .8859 is a June 21 high and polarity and the top of this rectangle.
Here's the weekly chart. My trade doesn’t show on it because I use a different charting package for weekly and monthly charting:
© 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.