AUDUSD—rally

My short profit stopped out at +177 pips. I bought two positions at .8175 and they're now profit-stopped. Normally I try to get my trades on the blog quickly but I couldn't do it this time and the market started to move.

The pair has had higher highs and higher lows since its low yesterday at .8082 and, of course, it can't continue downward in a straight line without some rally. So perhaps fear is abating a bit and the rally can take place. On the daily chart (not shown) there is the potential for a double bottom. The pair needs to climb above .8551 for that to be confirmed so it has quite a ways to go. On the three-hour chart you can see an inverted head and shoulders pattern which was confirmed at .8218.

Resistance is at .8266/76, .8364, and .8477. Support is at .8240, .8133, .8082 and .8067.

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.