EURUSD—Can it break above 1.3050?

The Euro has so far been unable to make new grounds, struggling with the 1.3050 cap. It may break above this but if it does, sellers are likely going to enter at 1.3108/50 (Elliott calculation and bull flag target) and 1.3200. What about the inverted head and shoulders that was confirmed? I’ve consistently maintained that until the pair gets above 1.32 it’s not worth discussing. However that price target is still in play at around 1.34. So, let’s see if the pair can overcome its inertia and get moving. If the pair broke the short term hourly trendline at 1.2930 it’s cause for concern but note the layers of support immediately beneath there.

As I’ve said, I’m not trading much this week because of being at a conference but I may try a buy order at one of the support levels, possibly 1.2950. Short-term momentum is still good.

Support is at 1.2950/30, 1.2875, 1.2844/30, 1.2794, 1.2733 and 1.2683. Resistance is at 1.3050, 1.3108, 1.3150, and 1.3200.

Here’s a 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.