On the Euro's daily chart, you can see price action opposite that I described it below for the USD. This makes sense. However, as I wrote yesterday, I expected price to hold under 1.4131. This morning it reached 1.4149. Although, it has since dropped, this suggests to me a more complex correction may be unfolding.
I'm still short but I wouldn't hesitate to stop and reverse if price action indicates that's the way to go.
There's resistance at 1.4194, 1.4248, and the key level of 1.4283. Above that November high, suggests gains to 1.4345 and possibly well beyond that. Immediate support is at 1.4021.
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.