After yesterday's high of 1.0422, Aussie has pulled back to a low of 1.0289, breaking below its short-term uptrend line. RSI also broke below its uptrend line. The pair appears to be trying to hammer out a bottom here. This is close to key support at 1.0257, the December high. Below that is support at 1.0200, then 1.0143 and 1.0059. If the pair can base here and begin another push upwards, it needs to take out the 1.0422. If so, 1.0500 is next. This would be in line with the overall uptrend that has been in place since 2008. Here's the three-hour 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.