EURUSD—new high

Thanks to my dumb mistake yesterday of closing out the wrong long position, I'm out of the Euro completely today because the remaining long from 1.2713 profit stopped at 1.2728 (+15 pips). The original one from 1.2550 had a wider stop on it since it was doing so well and I'd still be in. These things happen.

Euro has done well overnight, breaking out of its narrow range and reaching a high so far this morning of 1.2865. As a result, 1.3108 (the 1.618 times the length of wave A) is the next target. Other evidence for this target is that it's approximately .618 of the 1.3818 to 1.1876 down move.

Is there a way to get back in? It's at a little bit of resistance now so one could buy a clear break. Buying on a pullback is another possibility with 1.2775 (roughly the top of the rectangle it traded within for a couple of days) an entry point.

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.