Thursday, September 9, 2010

AUDUSD—Overcame .9222 resistance

I'm still long from .8913 with my profit stop set at 200 pips over the entry.

Meanwhile, as I wrote yesterday, it did try to overcome the resistance at .9222 and has touched .9261 this morning. This move has triggered a buy signal on my Point and Figure (P&F) 3-hour chart which I take fairly seriously. From the P&F chart, I have price targets on this chart up to .9420/50. From the daily channel on the normal price chart one could see the pair reaching .9460. These are not unreasonable if the pair can maintain its upward movement. It's important to keep in mind, though, that there is also significant resistance at and above .9300 (.9312, .9364). Best strategy now seems to be to add to my position on a pullback, possibly to .9222/.9185. Support is at .9222, .9200, .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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