Wednesday, January 5, 2011

EURUSD—no reason to buy

One has to search to find reasons to buy the Euro. I expect it will continue to decline into the 1.20s—not immediately and not without some rallies. However, a rally looks unlikely today.

I shorted this morning at 1.3222. This is right near the first support level I wrote about yesterday and it was clear it was faltering there. It's most likely going to hesitate around the current level of 1.3160 (as of 9:10 AM EST) down to 1.31 but after that, the next support is 1.3056 and 1.2969 (Dec and Nov lows). In the unlikely event of a rally, expect resistance at 1.3244, then 1.3430 and 1.3500. You can see where it attempted to break 1.3244 on the hourly chart below before selling off.

© 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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