The dip down to .9617 was below the short-term uptrend line but RSI has not yet broken below its uptrend line. I closed my long from .9490 at .9679 (+189 pips). I have one long left from .9338.
As I pointed out in my post on the Cable, the Swissy and Cable look as though they're finally diverging again (they don't usually move in correlation as they have been in the short-term lately).
The Swissy was battling fierce resistance in a zone to .9860. Tuesday's chart showed five waves, so this is likely a correction. The fifth wave at a high of .9784 was just beyond the projected .9760.
If this is an ABC correction, then A's length was 121 pips (.9783 to .9662 yesterday) and B ended at .9764. This implies a zigzag correction with C now projected at 1.618 that of A for .9568. That lines up with price support at .9605 and .9587. Let's see how it behaves there. When pairs rise quickly as this one did, there's not a lot of support built up so if it drops below .9587, there's minor support at .9525 but then there's not a lot to prevent it falling back to the gloomy .9300 lows.
© 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.