A few minutes ago, Swissy whacked its head on a speed line coming in at .9603. So now it's going to be interesting to see what happens because, as I wrote yesterday, it's just above the top of the range it's been hovering in lately and the .618 of last week's move down is .9610. Given the beating the dollar is taking lately I'm not sure it can pull off a close above here but here's looking at you, kid.
Support is at this morning's low of .9524 (just beneath the recent range) then .9463, .9424, .9331, and the old bugaboo, .9301. .9784 is the number to watch on the upside. The only real resistance between here and there is .9688. If it can maintain this rally 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 but I took some partial profits a few minutes ago for +126 pips.
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.