I don’t trade much on the last day of the month anymore as I try to use my time to get ready for the coming month by analyzing monthly charts, etc. I also don’t feel like giving back any of my monthly profits.
However, I just noticed that EURUSD dropped to a weekly pivot resistance level of 1.3791 before stalling. I don't use pivots by themselves and because it didn't correlate with much else in the way of support this morning I didn't consider it particularly relevant. But the stalling at that price is interesting. It's also just below the .382 retracement of the most recent move up from 1.3712. I might risk buying at the .5 level of 1.3782, maybe a bit higher, if momentum looked favorable on the short-term chart. However, a stronger retracement would be more appealing.
© 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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