EURUSD—weekly

On the weekly chart, Euro may be making another run for the long-term downward trend line at 1.4279. This downtrend line begins at the 1.6041 high with a second touch at 1.5144. Note, though, that the upper boundary of the rectangle is near 1.50, a nice round number. Of course, Euro reaching 1.50 would find Euro bulls dancing in the streets but it would not invalidate the longer-term downtrend nor the weekly Elliott Wave count. I'm interpreting the count as the move down to 1.1876 being wave 1 of (3) so the current uptrend is wave 2 of (3). That's one interpretation. There are others.

Reaching 1.50 would result in a double zigzag correction—well at least it would if there was then a sustained move down. For now, though, immediate weekly resistance is at 1.4279, near the prior Nov. 2010 high at 1.4283.

Here's the weekly 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.