Monday, December 13, 2010

USD Index Monthly

The shadow of November's candle on the monthly chart below dipped below the uptrend line which is not good news. That particular low of 75.63 came on the day the Fed announced the latest news of quantitative easing (November 4th). It does need to hold and better would be holding the low of 77.98 from later in the month. However, as we're in the thin holiday markets extreme moves can happen without meaning much technically.

There's a lot of indecision out there. The USD is poised technically to go higher yet the last three days of last week were basically sideways movement. Nonetheless, with the strong support and the strong November candle, one would expect from the monthly chart that the next move will be up. Here's the 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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