Tuesday, October 19, 2010

AUDUSD—lower high yesterday

The remainder of my long from .9841 profit stopped (barely) at +10 pips.

Topping out at .9958 yesterday, the pair has since fallen just below its short-term uptrend line from August 25th at .9754. This means last week's very short-lived spike high of 1.0003 still stands. Best to watch behavior off this uptrend line. If it and the RSI uptrend line hold then that signifies some latent strength. A retest of the upper channel line at .9909 might offer a shorting possibility. On the other hand, the pair is working out its negative divergences on the shorter-term charts so don't write it off yet.

Support can be found at .9754, .9709, and the real line in the sand of .9542. Resistance is at .9845, .9909, .9958 and 1.0003.

Here's a 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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