Alas, the world must continue to wait to see if the pair can achieve the .9851 high from 2008. Price has stalled with it still not making it above yesterday morning's high of .9730. It's considerably overbought and anyone looking for a long at this point needs to wait for a correction (which would be very welcome) or a clean break above .9750.
A .382 correction would drop it to around .9358 and if that doesn't hold as support then .9331 is just below. After that there's .9093 which is the bottom of the upward channel. If there's a break below that, watch out for moves back to the .8700 range. It's doubtful the bulls would give up easily and I will probably use any correction as an opportunity to add long positions.
Here's the daily 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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