Tuesday, July 13, 2010


Euro has reached a high of 1.2738. I've taken some partial profits at + 168 pips.

I’m still assuming it's finishing the C wave of an ABC correction where the A wave was 591 pips from 1.1876 to 1.2467. At 1.2738, the C wave is essentially equal to the A wave (exact would be 1.2743). If it continues to extend beyond this level, it could reach 1.3108 which would be 1.618 times the length of A. If one looks at the price behavior since Friday as a bull flag, the price target would be about 1.3150. Hmmph. That would be nice.

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.


  1. looking at the daily chart a very nice reverse head and shoulders pattern appears to have developed. If we can close above current highs the target should be above 134

  2. Thanks for commenting. Yes, I noticed the formation and I've commented on it in today's post. One can hope but I'm not sure this is really going to play out as a H&S. We'll see.