Yo, Euro! How about that 1.50? Take 2.

Bunting its way back to 1.50, the pair reached 1.5047 yesterday. I imagine this resulted in a Bronx cheer from those who held “no touch options” at 1.50. Get over it. The game continues.

A look at the hourly chart as of 8AM EST gives me no signal at the moment. There is negative divergence between price and RSI. 1.50 is still resistance since it hasn’t closed above it on a daily (and ideally weekly) basis. All I can do now is watch. A pop above 1.50 will result in me watching the short term charts closely. A drop to the 1.4950 area would result in the same. The question though is how much upside there is at this point. Nothing goes straight up. Plus there are disturbing signs on the longer term charts as I wrote earlier this week. How I’d love to see a drop back to 1.45! Unless it was a rout, I’d be buying with both hands. Here’s the one hour chart:

© Dianne Fecteau, 2009. 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.