This pair looks as though it's making a run 108.33, the uptrend line from the August low of 105.44. If the pair breaks below the uptrend line then it's likely it will return to that low. Basically, the pair has been in a range since May but 105.44 to 115.70 is a large enough range to have made some decent money. I'm currently short from 110.28. However on the one-hour chart, a hammer candle has formed with the low this morning of 108.89. If it doesn't break that low then a rally is in the cards. Since I had a profit target of 109.40 from my point and figure calculations, I'm taking partial profits here at +114 pips. A rally would most likely be capped at 110. Above there is 111.78/93 which will be formidable resistance.
Here's the hourly chart:
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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.