Euro has been hovering just below the 1.3717 resistance since yesterday (it touched 1.3721 in early London trading). The stalling here is normal as some take profits so it's not indicative the move up is over. In fact, hovering just below resistance is often seen as bullish. I'm still long from 1.3587 but took some partial profits at +75 pips.
It needs to break 1.3786 and then 1.3860 for the bulls to stay hopeful. If it can do so, the next serious resistance is 1.4060 (weekly downtrend line from 12/2009) and 1.4283 (November high).
Strong support is 1.3650. Below that is a short-term uptrend and speed line at 1.3624/12, 1.3573, 1.3500, 1.3457/31, 1.3396, 133.44 (uptrend line from early January) 1.3245/20/00 (strong), 1.3154 and 1.3000 (big psychological). I may add to my long position if it drops to 1.3624/12 and the price and momentum behavior look good.
© 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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