Wednesday, October 13, 2010

AUDUSD—at resistance

My long from .9782 profit-stopped in the dip for +54 pips. My stop was a little too close for such labored price behavior. I didn't bother to get back in because I expected a bigger correction than we've seen. At this point, though, one would have to say the pair is on track for parity with its high of .9928 today, a few pips higher than the previous high. On the three-hour chart it was a very bullish candle that got it to that high. The pullbacks are weak and parity is such a juicy target. Possible targets for the pair are 1.0060 to 1.0100. It still has to get through this resistance level. It's not just the recent high but in Jan. '83 the high was .9905 and in 8/82 the high was .9965. So the pair may dither about a bit before it gets there. If the pair should pull back to something such as .9542 or .9406, it will be an attractive long position.

Here's the three-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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