The Euro rallied during the Asian session up to a high of 1.3094 but has since fallen off despite the French finance minister's message that "We will defend our currency and we won't let it be attacked by anyone." Really? What internal politics led to that statement, I wonder.
No matter, under attack or not, it fell back and has reached a low of 1.2877 so far this morning. I shorted it at 1.2996 and took some partial profits at +93 pips. The remainder of my my short from from 1.3034 profit-stopped out for +50 pips.
The pair may find support in the layers of support that exist nearby. However, even if they're now bailing out the Euro big time, it doesn’t mean an immediate bull market will occur. Be careful if you decide to go long. The best approach is to take short-term trades where you're willing to be flexible.
Support is at 1.2877, 1.2808, 1.2798, 1.2605, 1.2516, 1.2460, 1.2425, and 1.2390. Look for resistance at 1.2905, 1.2996, 1.3067, 1.3094, 1.3214 and 1.3359. Ooh-la-la. Such a nice shorting level that would be.
No chart as I can't get it to post. I'll try again later.
© 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.
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