EURO—update

I was going to do my update on this after the NFP numbers but there has been such a fall that it's worth looking at. Did the French PM really say he wasn't concerned about the Euro's fall? I wonder if he is now. Loose lips and all that…especially in thin markets.

The pair's low so far is 1.2038. If it breaks below that 1.20 psychological support, we could be seeing mid-teens sooner rather than later. However, it's not going to go straight down. As a result, I took some profits off from my short at 1.2254 for +195 pips. I had also added another short before this brou-ha-ha at 1.2167. It's realistic to expect a bounce. I'm always suspicious when a pair moves before a news release. Does someone know something? We'll see.

Here's the 15-minute 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.