Weekly pivot calculations provide an R1 resistance level at 1.4961 and R2 at 1.5116. The latter ties nicely with the monthly R1 level at 1.5105. On the weekly chart, one can identify an ABC correction. A begins at 1.1876 with a three wave move up to 1.4283; B ends at 1.2859; and C is in progress with a target of 1.5266.
Another way of looking at this entire move is to consider it a harmonic move on the weekly chart of AB=CD with C to D still in progress. Taking the B to C retracement, would result in a price target of 1.5163. That is close to the resistance levels from the pivot calculations above. Looking at the monthly chart, one can trace out an AB=CD move in progress (AB=1.1876 to 1.4283 with C beginning at 1.2971) and the target is 1.5378. I think that is the high end for any move.
Support is at 1.4728/11, 1.4520, 1.4450/34, and a strong zone in the 1.4184/15 range.
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.
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