Monday, February 14, 2011

EURUSD—pressure is on

The bearish pressure that followed the high of 1.3861 appears to still be exerting downward pressure with a drop to a low of 1.3432 so far this morning. There's a small head and shoulders on the daily chart (left shoulder was 1.3789; head was 1.3861; right shoulder was 1.3744). The confirmation level was 1.3509 and the target is 1.3157. Before it gets there, support is at 1.3396 and 1.3244/32 (strong support). Euro is within a larger downward channel and the lower boundary is 1.2607, right on a speed line as well. If the pair can't climb back and close above 1.35 today, the bears will have seized control and won't easily give it back.

Resistance is at 1.3498 and 1.3744. 1.40 seems a dream at this point.

I went short on Friday at 1.3535 based on the shorter-term charts.

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.


  1. How was your last long EUR trade? Did you close out all or remaining part of your positions and go for short EUR instead?

    I shorted EUR as well last Thursday at 1.3644.

  2. I closed out part at 1.3607 and the remainder stopped out at 1.3552. You found a good entry price. It never fails that when I go off to a conference or somewhere that the market starts moving.