Tuesday, January 11, 2011

USDCHF—bullish hourly candle

I'm still long from .9338 and .949. I closed the trade from .9652 at .9679 (+27 pips), not really expecting it to get through resistance. The candle that just closed on the hourly chart (not shown) is very bullish and was a break above the consolidation zone (.9605 to .9727). It now looks ready to challenge .9800 and possibly .9860 which is the top of this rather fierce resistance zone. Note the rectangle consolidation range is 122 pips and the target from that is .9849. It has also broken above a speed line so conceivably it could return to 1.0066 before having real problems. However, the USD index has moved up in five waves so a correction may be forthcoming in the Swissy as well. I've traced out five waves on the three-hour chart below where, if wave five equals one, the target will be .9688. That's a lot of resistance lining up in the upper 96 range.

Support is at .9600 and .9562/41.

Here's the three-hour 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.

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