I still have two short positions from 1.2167 and 1.2061. I've taken some of the first one in profits this morning at +247 pips.
As I blogged yesterday, the pair should see a rally at some point and this ranging may mean it's coming sooner rather than later. Despite slower growth and austerity measures, Greece, Hungary, and other countries financial problems, and bank and credit issues in Eurozone, Ben Bernanke has been making soothing noises over the Euro which certainly tells you something. Of course, nobody can be sure entirely what. Still, expect a rally at some point and it's possible it could go to a high of 1.2450 or so. Which would be a wonderful level to short. If the pair approaches 1.1992, expect sellers to come in. However, use tight stops if shorting there.
Resistance (both short- and long-term) is at 1.1992, 1.2080, 1.2153, 1.2216, 1.2326, 1.2453, and 1.2885. That's quite a gap between 1.2453 and 1.2885 but there's no need to calculate shorter term resistance in between those two unless the Euro can climb higher that 1.22 or so. Support is at 1.1876/60, 1.1800, 1.1638, and 1.1500.
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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