EURUSD—sinking

Euro has continued to sink. In doing so, it has dropped below its daily 200 SMA and is resting on a speed line. A close below here would add bearish pressure to the pair. Not that it needs additional bearish pressure…

The low so far of 1.3006 is near the early December low of 1.2969. Below this lies support at 1.2785 (a fibo of the 1.1876 to 1.4283 move), 1.2644 (early September low), and 1.2588 (August low). A rally would find resistance at 1.3056, 1.3260/75, 1.3378, 1.3434 and 1.3500.

I'm still short from 1.3222.

Here's a daily 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.