On the short-term charts, this is Euro's third test of 1.3670 this morning, just below the daily 10 SMA of 1.3677. As I wrote yesterday, 1.3667 is key—the fact it climbed to a high of 1.3731 is icky for the bears. If it maintains this support then a long might be the smartest way to go as 1.3825/85 is the next resistance. A failure and definitive close below 1.3667 is a sign of weakness and would mark the rise to 1.3731 as a bull trap—almost classically so. Support is at 1.36, then 1.3447.
© 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.