EURUSD—how about a good solid bounce?

I tried a small long this morning at 1.3587 after 1.3545 held as support. I'm getting ready to move the stop to breakeven. I've analyzed and re-analyzed Euro and there should be a bounce at least back to 13700/50. If it can get there, perhaps it can get to 1.3853 and possibly 1.4039. I know it sounds like a gigantic stretch right this moment and it may indeed be. But those levels would fulfill rather modest price objectives for a bounce and give it the energy it needs to dip to new lows.

Support is at 1.3545, 1.3531, and 1.3435. Resistance is at 1.3704, 1.3736, 1.3788/97, and 1.4026.

Here's the 3-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.