Thursday, February 24, 2011


Aussie had a higher high and higher low yesterday but is still within sideways action largely around the parity level. Since January 31 there have been seven lows below parity, most above 99.60. There has only been two closes below parity in that same period of time, both within seven pips of parity. As to the upside, the high for February has been 1.0200 back on the 4th and while it has come close (yesterday's high was 1.0079) so far no cigar. The bulls need to first sustain a close above 1.0200. On the downside, .9950/16 is the line in the sand.

If the close over 1.0200/57 happens, the longer-term probability is for the pair to break above the daily triangle. It make also be possible for the pair to approach the top of the upward sloping rectangle. However, before that happens, sideways activity could continue another several days. One thing to keep an eye on is RSI. On the daily chart, it's nudging below the uptrend line. Similar action on price makes this a concern.

Here's the daily 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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