On the daily chart (not shown), yesterday completed the three-candle evening star formation. The pair has dropped below its daily 200 SMA which is at .8950 so it will be interesting to see if that will hold price. The next logical support is .8915 (the bottom of the downward sloping channel). After that is .8843 (the 100 SMA) and then .8775 (.382 retracement level of the move up to .9222). Should this all manage to reverse upward, then resistance is at .8960. After that the top of the channel beckons at .9008 which is psychological resistance as well.
Here's the hourly 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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