The pair isn't out of the woods. Although it has broken above the short-term downtrend line on the three-hour chart, it is at resistance from the June 7 spike high of 1.4563. As a result, I'd expect to see sellers coming in here and am looking to take a short position. The overall move from the May low looks corrective (actually, it doesn't look corrective so much as a pair hanging on for dear life). On the daily chart (not shown) it could be a bear flag. But these things can surprise you and if the pair breaks above 1.4682 then the picture becomes much more bullish. 1.46 would be a psychological victory as well. As I blogged yesterday, the doji low was near support and so far the rally is holding. I would like to see momentum falter on the shorter-term charts.
Support is at 1.4395/89, 1.4346, 1.4260 and 1.4228. Resistance is at 1.4532, 1.4563, 1.4682, and 1.4714.
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.
No comments:
Post a Comment