Thursday, May 5, 2011

EURUSD—nearing major support

Most recent low is 1.4654. The 38.2% retracement of the move from 1.4157 to 1.4882 is 1.4605; 50% retracement is 1.4520. The April congestion zone was also around 1.4520. The annual pivot calculation for R1 is 1.4683. The monthly pivot is 1.4584; weekly S1 is 1.4573.

What this means is the Euro is in a strong support zone from here down to 1.4520. That's 130 pips below the most recent low so the zone is rather large. However, it also means that it could base anywhere in this zone. Obviously, if it breaks 1.4520, it's huah for the bears, especially if there is a weekly close below here.

© 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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