I wouldn't get too excited about the pullback in Euro down to a low of 1.3736 so far because surely it can squeeze out a bit higher climb before failing. If it can't, things are grim indeed.
Realistically, 1.3723 could stop this correction since it's a fib confluence area as well the area of 1.3726 to 1.3726 early March highs. Below that, the 1.3651 to 1.3697 area could serve as support because of confluence. It's a bit tricky because the pair is in an overall downtrend and so one assumes it will eventually resume that until definitively proven otherwise. If it broke above 1.42, I'd start to wonder about that because that would be into wave one territory of the move down from November. But I don't think that's going to happen. If it can resume the uptrend, I'd expect 1.3853 or possibly 1.4039. Not sure there's enough strength to get to the latter but we'll see. If momentum starts to substantially fall off on the shorter time periods, it's a hint the strength isn't there.
© Dianne Fecteau, 2010. 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.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment