EURUSD—going nowhere for now

Euro has been in a small range this week from a low of 1.4027 to 1.4149. I'm still short, thinking there will be a break to the downside. This is because of the ABC corrective look of the daily price action as well as the longer downtrend, in effect since July 2008. My stop is at breakeven.

On the hourly chart, the hour just closed (10 AM EST) is a hammer. Since it's near the range support, there may be another bounce but the immediate resistance is 1.4149, followed by the prior high of 1.4248 from last week and the key 1.4283 November 2010 high.

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.