In a teeth-gnashing move, the market profit-stopped me out at 1.0464 yesterday (+50 pips) and then turned around and marched upward to a high of 1.0603 early this morning before falling back to 1.0560. I wasn’t at my computer trading yesterday (and won’t be much of this week) since I’m at a conference. Had I been trading I would have jumped back into the trade. OK, those things happen and it’s hardly the last chance I’ll get to trade. It’s still annoying.
The hourly chart shows a just completed doji with a low of 1.0560 so that is nearby support. If that holds, we may see another push up but note that the pair is overbought on the hourly. The thing that’s of interest though is that the pair broke above the range I wrote about yesterday (1.0394 to 1.0564) and just came back to test the top of the range so it seems possible it’s on a roll.
Below 1.0560, there’s additional support at 1.0461, 1.0408, 1.0394 and 1.0368. There’s significant resistance from 1.0603 to 1.0676 so the pair is going to have to get through that.
Here’s the hourly 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.