AUDUSD—nearing support

With a low so far of .8805 this morning, the pair isn't that far from the short-term uptrend line from June at .8742 where it should bounce, possibly to .8865 or higher. I've taken partial profits at +132 pips. The pair's drop has taken it below the 10, 50, 100 and 200 daily SMA. Currently the pair is trying to regain the 100 SMA which is at .8833. A break below .8740 would be significant.

Support is .8805, .8770, .8742, .8715 and .8655/40 (July 19 low and 50% of June 7 to Aug. 6 rise). Resistance is .8865, .8992, .9050 and .9080.

Here's the daily 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.