Thursday, March 10, 2011

AUDUSD—near support

Aussie is not immune to the negative mood, touching a low of .9992 so far today. However, it's on a daily speed line and approaching additional good support at .9988/68, consisting of a monthly pivot support, the 100 daily SMA, and confluence. A sustained move below this would be bearish with the next strong support at .9804.

However, as you can see on the daily chart below, the pair has been consolidating within a triangle. The more likely move is upwards. One can make an argument for a double/triple top or head and shoulders but neither of these exists until the confirmation occurs at .9804 for the double top and H&S and .9538 for a triple top.

Resistance is at 1.0197 and 1.0257. The pair needs to close above parity today. If it doesn't it will break a 17-day streak of having done so.

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.

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