Wednesday, February 9, 2011

USDCHF—more resistance

Swissy managed to climb above the resistance line and the .618 retracement of last week's move down (.9610) to a high of .9661. It has started to stumble a bit and may be forming an evening star candle formation on the three-hour chart. This isn't certain until the current candle closes. .9543/24 is a likely support since it's fib confluence and the prior low. Below that is .9463, .9424, .9331, and .9301.

.9784 is still the number to watch on the upside. I wrote yesterday that the only real resistance was .9688 so it needs to get through this. If it can do so and close above .9784, then it's possible it can get to 1.0280 or more. I have a target on my three-hour Point & Figure chart of 1.0250 which won't be invalidated until .9300 is broken.

I'm still long from .9444 and added another position yesterday at .9578.

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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