Since then the pair has held its own and last week's low of 1.5297 has held. It's right on its weekly uptrend line and still clinging to the .382 retracement. Bulls would like to see it overtake 1.5533 at least. That price would start the bears selling so if it overcame it then that would be positive and make 1.5703 possible. If it cleared that as well then the 1.5998 August 6th high is next. As I wrote last week, this price is seen as the end of a corrective move so there would be major resistance here. Support is at 1.5400, 1.5389/77, 1.5346, 1.5297 (strong), 1.5235, and 1.5132. I've bought a small position at 1.5414. The stop can be tight, just below that last completed doji on the hourly chart below. This may be taken out as the real support is at 1.5297 but if it takes it out price may drop to that and rally anyway, giving another chance for a buy or tolling the bell for further drops.
Here's the one-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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