Monday, January 17, 2011


I missed the short in this pair as it happened late Friday and I didn't analyze the pair over the weekend where I might have gotten in earlier today. This happens—some trades get away. However, it may retest the high.

When I wrote last week about this being the C leg of an ABC correction, I wrote that the potential for 1.618 of the A leg was 111.09. The pair reached 110.99 before falling. On the hourly chart, there's a low this morning of 109.58. This was a hammer candle and support should hold. A close below targets 1.0895 (prior resistance) and then 108.50 and 108.00. Below that is a zone of support from 107.86 down to 106.83, then 106.24 and 105.83.

Resistance is 110.00, 110.99, and 111.68/97 (strong).

I'll watch for a rally in this pair.

© 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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