The Euro is having a terrible time breaking above the 1.4036 resistance. Some people are talking about a potential double top but it won't be a double top until price breaks below 1.3752. The nice thing about it hanging about just below 1.40 (high yesterday was 1.4013) is that if one wants to short, one can have a very tight stop. The 1.4013 high led to an evening star formation on the three-hour chart. Beware, though, of pairs hanging around just below resistance. They often break through. If someone wants to go long, I'd wait for a pullback at this point.
© 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.