The 20 EMA on the weekly chart has been significant for this pair recently with it capping prices the weeks 4/16, 4/30 and 6/25. The last two weeks price has managed to climb above it but it closed this past Friday just below. The EMA is currently at 1.5064; the high so far today is 1.5086. Until this weekly EMA is definitely behind it, I don't think things look all that positive for the cable. The pair is also caught in a channel that's trending down. 1.5329 is the resistance line of this channel. If price ever gets there it would suggest a short position.
The low this morning of 1.4949 was almost at the price target from the double top I blogged about last week. Its climb up to 1.5086 looks as though it tried to retest the confirmation point of the double top (1.5081). On the shorter term charts the moves look somewhat corrective. This pair bears watching.
Resistance is at 1.5086, 1.5241, 1.5329, 1.5523 and 1.5816. Support is at 1.5017, 1.4949/, 1.4874, 1.4710, 1.4696, 1.4590 and 1.4550.
Here's the weekly 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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