Euro seems to have hammered out a base on the hourly chart in the 1.2659/79 zone and the 1.2659 low was a hammer. Since then it has touched of 1.2743 which is near the daily 10 SMA. A rally up to a retest of the 1.29 level is possible and I just bought at 1.2724. I'll move my stop to breakeven as quickly as possible and take some profits (if they come) at 1.2775 since it may stumble there.
All trades carry risk and this one is no exception. I can make a case for shorting here but there is more positive sentiment this morning and there are short-term technical signals that support the buy both on the normal price charts and on my 3-hour point and figure chart. The ability to set such a tight stop was certainly a factor.
Resistance is at 1.2755/75, 1.2833, 1.2918/30 and 1.3000. Support is at 1..2674/59, 1.2626, 1.2588 and 1.2523.
I can't get the chart into the blog right now. I'll post it later.
© 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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