Assuming we're in wave C as I explained yesterday morning, the potential price is between 1.2817 to 1.2935 (wave C = 1.618 * wave A). A price resistance exists between 1.2833 and 1.2922. The daily 20 SMA is at 1.2826; an uptrend line from June is at 1.2934. So there's reason to believe all of this will cap price action. If it doesn't, then additional resistance is at 1.3000 to 1.3122. The latter is the .382 retracement of the move down from last November. Finally, although I think a many would be stunned if price made it here, the next speed line and the .50 retracement level is around 1.35. I'd be shorting with both hands at that price. But more realistically, I'm still thinking about a possible short near 1.29.
Support is at 1.2777, 1.2663, 1.2626, and 1.2588.
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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