Thursday, February 3, 2011

AUDUSD—bull flag

AUDUSD—bull flag

Aussie still hasn't managed to overtake the 1.0148 Tuesday high, spiking to 1.0144 this morning. This may be only a retest of the Tuesday high prior to a move down but yesterday's low was 1.0055, almost spot on my potential C wave calculation of 1.0058.

On the three-hour chart, the pair broke above a bull flag with 1.0085 as the upper boundary. It has just retested that boundary. It doesn’t look as though it spent a lot of time inside the flag but it's at 2/3 of the time it took to build the flagpole. Price target is in the 103 to 104 zone that other price targets are lining up within. The flag's lower boundary is 1.0028. Below that is support is at .9988,.9916, .9867, .9804, .9740, and .9691.

It's also possible that the rectangle drawn on the chart will contain further upward price action.

I still have part of my position on from .9952 and added another one yesterday at 1.0074.

Here's the three-hour chart:

© Dianne Fecteau, 2011. 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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