EURUSD—finally out of triangle

The Euro made it out of its triangle to reach the next resistance at a high of 1.3796 this morning. It has quickly moved into overbought and the candles are throwing off some upper shadows on the hourly chart. I took some partial profits at +180 pips.

There's a potential evening star forming on the one hour chart but it will require the completion of the current candle to know for sure. Resistance is 1.3800, 1.3839, and 1.4026. Support is at 1.3753, 1.3734, 1.3660 (the top of the triangle), 1.3621, 1.3551, 1.3531, 1.3435 and 1.3250.

Even if, like me, you believe the Euro is weak, a more serious correction was needed so this is good news. Sell signals will present themselves. If I'm wrong and all is well with Eurozone, well, that's not bad news either, is it? There will be additional buy signals. Watch the chart.

Here's the one-hour chart:





















© 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.