While all the chatter this morning is about how the Swissy has slipped below 1.0500 and is therefore in a lot of trouble, the more interesting picture to me is the weekly chart because you can see that until the pair slips below parity it hasn’t done much of interest at all. At that point it will have slipped below its symmetrical triangle. The upside of that triangle is 1.1660 and a break above that would also be interesting as in the bears would be howling then. The potential price targets, up and down, of a break of this triangle are healthy to the tune of 2,663 pips. The other thing noable on the weekly chart is the two shadows below the last two weekly candles. The pair looks as though it’s trying to base. Let’s see if it can make it.
For the last seven days the pair has been in a fairly narrow range of 170 pips (1.0394 to 1.0564). I’d like to see it get out of this range this week but we’ll have to see. Meanwhile, my long from 1.0414 is profit-stopped and I took some partial profits this morning at +90 pips.
Nearby support is at 1.0408, 1.0394 and 1.0368. Resistance is at 1.0564, 1.0581, and 1.0639. As I wrote on Friday, the 1.0502 to 1.0546 and 1.06 price zones are significant resistance with fib confluence, polarity, and moving averages.
Here’s the weekly chart. My trade doesn’t show on the weekly charts because I use a different charting package for longer term charting.
© 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.