Wednesday, July 7, 2010

EURUSD—struggling and stair stepping

I'm still in my two long positions from 1.2400 and 1.2413.

After reaching 1.2662 yesterday Euro stumbled down to 1.2558 this morning. This is a Fib confluence zone of 1.2589 and just under a daily speed line. It was struggling here yesterday; it's struggling here today. Should it resolve this then it may be able to climb above yesterday's high and possibly even reach 1.2743 (the length of the A wave of an ABC correction). On the three-hour chart below you can see the stair-stepping up in price.

Resistance is at 1.2662, 1.2743, and 1.2800. Support is at 1.2480, 1.2435, 1.2409, and 1.2350. This shows layers of support so if it breaks below those then expect lower.

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.

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