Monday, October 25, 2010

EURUSD—possible retest of 1.4159

From an Elliott Wave perspective, one would expect more moves down although within any reasonable interpretation there’s a chance for a move back to at least the 1.4159 top and possibly a bit higher. I like the possibility of a move up to 1.4238, the top of the current small channel. As a result, I just bought a small position at 1.3978.

Overall, though, my bias is bearish and I’ll be watching for a sign of another topside failure. Going below last week’s 1.3698 low would indicate additional moves down. A move below 1.3587 or 1.3500 would be extremely negative.

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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