Wednesday, September 8, 2010

AUDUSD—Back at resistance

I'm still long from .8913.

The pair has touched .9182 so far this morning. This is 4 pips higher than the previous high at.9178 Monday. Next goal is above .9222 but beyond that it really needs to close above .9300 for continued climbs. I've already lightened my position enough at good profits so all I can do now is move the stop.
In the short-term, I think it's going to try to overcome this resistance. The price zone has been small beneath the resistance and this usually denotes strength. In the hourly time frame a potential C wave in progress could carry price to .9185.

On the daily chart the pair is within the upward channel I wrote about yesterday. (The weekly and hourly chart also shows upward channels). The top of this channel is at .9450. Sellers would swarm in at that price but that's still a bit of a distance and there are various resistance points along the way. After .9185 there's .9222, .9300 and .9364.

Support is at .9092, .9067. .8911, and .8872/61.

Here's the 1-hour 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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