After finding support yesterday at 1.3775, Euro did try another move up only to stall at 1.4001. My long from yesterday stopped at break even. Frankly I was surprised it got that high—it was just shy of the October 10th high. I took another short this morning at 1.3971. If this one stops out then I'm stepping aside for now. There's no real movement and this isn't a range that's easy to trade.
I believe this pair should be going down in price but it doesn't matter what I believe until there's some firm evidence from the chart that it's doing so. As I've blogged several times in the past couple of weeks, one can make a case for the mid 1.40s rather easily. The thing is that I'm not comfortable taking a long right now. The pair also isn't really dropping. Could it be I don't understand what the market is doing? It could be. That only means I can't trade this pair right now. Understanding will return at some point. Certainly below 1.3335 one could expect it to continue down but I'm sure there will be evidence before that price is reached.
No chart—I'd be drawing the same old, same old.
© 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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