USCHF is again dropping down to the 1.0400/1.0395 lows for what will either be a third test of this support level (on the three-hour chart) or a mere point to pause before further lows. The move down on the hourly chart is brisk. I may place a small buy order for that point since I need to be leave soon to go to my first meeting. Tight stops are imperative. Even if the pair bounces from 1.04, there’s not much significance to its moves until it overcomes the tough resistance from 1.0560 to 1.0675. This may have to be sideways trade for the time being as it has been since earlier in July. On the three-hour chart this move looks corrective during a downtrend which hints more lows may be coming. As my longer term analyis has shown, however, the pair is still in an overall uptrend.
Support is at 1.0400/395, 1.0368, and 1.0228/17. Resistance is at 1.0550/60, 1.0603, 1.0640, and 1.0676. Only if it breaks out of this resistance zone is it worth posting higher levels.
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.