Euro has been choppy this morning because of the ECB announcement and the Trichet comments. This isn't unusual. Before that Euro had corrected to a high of 1.3217 (missing my profit stop by one pip). It then sunk to 1.3060 which is a .618 retracement of the rise from the Nov. 30th of 1.2969. In its rise it cleared the 1.3150 resistance and had four consecutive hourly closes above that. It needs more, preferably a daily close. If this happens, then I'd expect price to retest the uptrend line from June at 1.3315 or the 1.3335 former support. Only above there would I expect to see a move back to the 1.35 area. I don't think that's going to happen.
© 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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