AUDUSD—weekly

Very bearish close last week for AUDUSD. I'd like to see the pair bounce to the downtrend line (.9304) where I'd certainly go short. But whether it will get there or not is unclear at this point. .9222 and .9208 were the highs for the last two weeks. The psychological .9000 is right above the current offer of .8971 and this will be resistance. Staying above .8890 is important for immediate gains but more interesting is the .8775/81 level which is the .382 retracement of the move up to .9222 as well as the current 100 daily SMA.

Definitely worth keeping an eye on but with the lower liquidity one has to be careful. Here's the weekly 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.