There's a good chance this little rally could achieve 1.3727 (.618 of the move down from 1.3862 to 1.3509). At this point, I'd be looking for signs of failure to find a position that put me back in synch with the overall downtrend. However, if they don't exist and price closes above 1.3727, I'd look for another run to 1.3862. Where I'd short for sure.
If the pair should reverse downwards, expect initial support at 1.3509 and fib confluence of 1.3485/81 (.382 of 1.2874 to 1.3862 and .382 of the move up to 1.3862 from 1.3255). After that is 1.3361 and if that broke then 1.3244.
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.
Impressive trade for this entry at the tip!
ReplyDeleteI saw this setup in 1 hour and in confluence with daily at 1.35074. Entrying at 1.3517 is just super! I want to buy too but still think time and price haven't reach the minimum threshold. Shall wait and see. I could be wrong.
Wish you good trading!
These short-term patterns can sometimes pay off. I'm not bullish on the Euro since the overall structure seems to favor dropping but I trade any direction that looks as though it's an opportunity. I haven't posted on time in quite a while. I shuold do so soon. Thanks for reading.
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