Tuesday, May 24, 2011


Euro, after dropping to a low of 1.3970, has bounced to a high of 1.4119. Here it is struggling with a strong resistance zone of 1.4106 to 1.4162 that previously served as support. The .382 retracement of the move from 1.2874 to 1.4942 is at 1.4153.

On the hourly chart, price action looks impulsive with the rise to 1.4124 a possible fourth wave.

Note, that on the daily chart (not shown), the low formed a hammer so a drop below would be bad news. Support is at 1.3970 and 1.3863.

Here is the hourly 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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