It looks as though it might be pushing up to the downtrend line drawn from 2002 which would make a third touch for that line. It if goes further, it would be a third touch for the downtrend line drawn from 2005. That price zone is from 86 to 88.70. If it broke that downtrend line then it's likely it will exceed last year's high of 89.71. On the daily chart (not shown) you can make a case for an upwave that will complete just above 85. However, one should expect a correction after that point before it turns up again. So the weekly scenario is the long-term scenario. A correction could see 82.65 (short-term daily uptrend line) and then down as low as 80.03 (April low). Beyond that is the uptrend line on the monthly chart which is just belo 76.
Here's the monthly 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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