Tuesday, August 3, 2010

EURUSD—good rally

Euro is doing well by breaking through the 1.3150 resistance from yesterday and also achieving a high of 1.3262 this morning before falling off a bit. I bought yesterday at 1.3116 and took partial profits at +110 pips this morning. I may add back to my position.

Technically, the pair could be held back by the 1.3250 area but it doesn't seem likely. The next price target is in the 1.34 area. As I've written, if wave C is 2.168 of wave A the target is 1.3433. The inverted bull flag target is in the 1.34 area. 1.3398 to 1.3422 were some April highs. So there is a lot of energy for this area as a target; if it gets there that's also enough resistance to cause selling with a resulting price drop. We'll have to see what happens. Before that is daily channel resistance at 1.3355.

So resistance is 1.3262, 1.3300, 1.3355 and 1.3433 and 1.3525 (50% retracement of wave one down from November highs). If it exceeds that then we're in for interesting times. Support is 1.3218, 1.3125 (.382 retracement of move down from Nov high), 1.3000, 1.2981/50, and 1.2877.

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.

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