Monday, September 13, 2010

AUDUSD—bubbling up

I'm still long from .8913 and this has certainly been a happy trade with it up over 400 pips this morning. I've set my profit-stop 300 pips over the entry price.

The pair touched .9334 this morning. This makes the price target on my 3-hour P&F chart of .9420/50 more likely. On the daily price chart, the top of the channel is at .9489. However the pair is overbought (over 70 on RSI) on the three-hour chart and nudging in and out of it on the one-hour chart so a reaction wouldn't be unexpected. More than likely I'd add to my position, especially if it got near .9207. Bulls are beginning to babble about .9851 but that is not anywhere near a sure thing. There's still a lot of bearishness in the charts and this could all be one big bull trap.

Resistance is at .9364, .9406, . Support is at .9312/00, .9289, .9207/00, .9185/70, .9092, .9067. .8911, and .8872/61.

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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