Thursday, October 21, 2010

AUDUSD—you have to love it

Anyone going long AUDUSD the last several months has to love this pair. I'm still long from yesterday's buy at .9685 and have taken additional profits at +190 pips. I'll let the rest of it run or hit its stop which is at .9795.

Still…this pair is as overextended as any of them and I don't consider yesterday's dip to .9662 steep enough correction to make a real difference. Two weeks ago the pair stumbled a bit and this week it had a lower low than last week. But we may see another stab above parity. Note that unlike the Euro hourly chart I posted in the last post, this pair has no negative divergence on the hourly chart. But it is at resistance so let's see what happens.

Here's the hourly 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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