Monday, November 15, 2010

EURUSD—bears in control

Euro closed last week at 1.3691which keeps it under pressure. You can see on the monthly chart below that it didn't quite make it to top of the channel before faltering at 1.4283. Although there may be a near term bounce, I'd expect Euro to weaken unless it easily clears resistance in the 1.3825/85 resistance zone (EW count, fibo, and 10 and 20 day SMA). I'll short from there or if weakness continues this morning from the 1.36 area. However, note that for the last two months, the 20 EMA is essentially providing support (currently 1.3571). If that fails, the price target is 1.3335.

Here's the monthly 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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