Monday, November 29, 2010

EURUSD—approaching a support cluster

The failure of 1.3335 and the break below the uptrend line from June were blows for the bulls. Euro so far isn't showing any signs of ending its slide and the low so far is 1.3137. I'm still short from 1.3638. This move has the potential for lows in the 1.28 area and possibly lower. However, Euro is approaching a support cluster between 1.3020 and 1.3130 consisting of the lower channel line of the current slide as well as a fibo, speed line, and price support. It's possible we'll see a rally which would provide a shorting opportunity. Only if the pair definitively overtakes 1.3317 which would also move it above the broken uptrend line would I expect to see a potential move back to the 1.35 area. I don't think that's likely. A break below 1.31 would target 1.30 and then 1.28. This is based on longer term charts. Obviously there will be small wave action between here and there.

© 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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