Monday, August 30, 2010

AUDUSD—weekly chart

The remainder of my long profit-stopped out on Friday at +30 pips before then merrily heading up again. This happens. The pair then reached a high of .9032 before falling back today.

On the weekly chart AUDUSD formed a nice hammer with the dip to .8770 last week. That's now a very good support level--short-term uptrend lines, the .382 retracement level of the move up from .8067 on May 25 to the Aug. 6 high at .9222 at .8781, etc.

Above that is now other support—the 200 daily SMA is at .8938 and the 10 is at .8926. Staying above these will be bullish. However, if it rallies above .9020/30 again, the bears will probably sell. .9032, .9050 and .9082 creates quite a resistance zone. There are, though, downtrend lines above that, up to .9326. I doubt we'll see them touched but who really knows.

Here's the weekly chart:

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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