My two longs from.8497 and .8597 profit-stopped out in the pullback for +65 pips and breakeven respectively.
After reaching a high of .8645, it appears the negative divergence yesterday on the three-hour chart correctly told the story. Price dropped to .8562. During the pair's rally it overcame key resistance at .8531 so this move may be only a retest of that level. Additional support is at .8500, .8467, .8400 and .8383/74. Below .8374 would signal the renewal of the overall downtrend.
Given that the overall trend is down, faltering at minor resistance, and the fact that there are support levels well below where the pair is at now, I've held off re-entering a long position. If I do re-enter then my initial price target remains the same—this is .8732/46 which is fib confluence as well as the target for a pennant that formed on the daily chart. If the pair clearly closes above that then it's possible the psychological .9000 is next.
No chart as there's not that much new to show.
© 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.