Euro touched 1.3335 Friday but has fallen back a bit, no doubt breathless at the height. Still, if it has made it this far it could make it to a 50% retracement of the move down from November which would be 1.3525, thus encompassing the inverted head and shoulders target as well. The point is the pair keeps pushing upward and while this may have more to do with the low liquidity of August than it has to do with any real direction of the Euro, one has to stay aware of it and trade accordingly.
I'm not particularly interested in this pair right now (it's either going to have to have a good retracement and show some signs of basing or achieve more highs and show some signs of failing) but for those who are, resistance is at 1.3335, 1.3433 and 1.3525 (50% retracement of wave one down from November highs). Support is at 1.3200, 1.3125 (.382 retracement of move down from Nov high), 1.3000, 1.2981/50, and 1.2877.
Here's the weekly chart. One could make a case that this whole upward correction is a bear flag. If so, I'd expect it to go on for a while longer.
© 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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