After dipping to a low of .9799, the Swissy has regained its short-term uptrend line on the hourly chart (not shown) and, unless it drops quite a bit further today, is on track to have the same low as last week at .9726. This is more evidence that it's basing. Below .9726 , of course, would hint at further lows. Market action is a bit sluggish, in part due to the thinning holiday markets. As I pointed out the other day, the pair is holding the uptrend line from the hammer low of .9463 in October and RSI momentum looks good on the longer-term charts. Nonetheless, one must be careful to keep stops tight on any longs. There's a chance that pattern on the weekly chart could be a bear flag which, if it played out, would be heart-stopping. Unless you were short. Then it would be joyful.
Here's the weekly chart. My trades don't show on the monthly charts since I use a different charting package for weekly and monthly charts.
© 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.