So far this morning the pair has dropped to a low of 1.0154. The pair appears to be heading to its short-term uptrend line of 1.0124 on the three-hour chart below. This is close to the daily 21-day SMA of 1.0137. In the drop it broke out of the short-term, narrow trading range of 1.0210 to 1.0288. The price target for this range would be 1.0132. Since these three prices are so close, they should provide some support but let's see. It's possible the market has already forgotten its nervousness of the last several days and is ready to charge ahead and dump the USD.
Support is at 1.0124, 1.0101, 1.0012, .9951 (the uptrend line on the weekly chart), and .9930. Resistance is at 1.0247, 1.0300, 1.0393, 1.0446, 1.0470, 1.0550, 1.0690, and 1.0745.
Here's the three-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.
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