Wednesday, April 20, 2011

EURUSD—above resistance

With the high this morning of 1.4547, Euro is above the 1.4520 resistance that had capped a congestion range. It is clear that buyers did enter as I wrote about the weekly chart on Monday. Because it held at 1.4157, that strengthens that area which was already a strong support zone.

If Euro can maintain the move, the target of the top of the daily triangle at 1.4969 is possible. However, note the negative divergence on the daily chart. Failure here will find support at 1.4326 (the lower boundary of the rectangle), 1.4157 and the psychological 1.40.

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.

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