AUDUSD—outside week

I'm still long from .9782. Last week was the 7th up week from the low of .8070 but last week's low at .9542 was lower than the week before that. It was also an outside week with the high higher and the low lower than the week before. Most likely it was because of profit-taking but that could signal there will be more dips. On the weekly chart you can see negative divergence. It really needs to stay above .9542 (and a dip to there would be a buying opportunity). The hanging man on the daily chart (not shown) from Friday has a low of 9702 so dips below this would suggest prices will drop.

Here's the weekly chart. I use a different charting package for weekly and monthly charts so my trades don't 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.