AUDUSD—rally

I bought near the channel line I wrote about yesterday at 1.0089 and have moved my stop to a bit better than breakeven. You can see on the three-hour chart below that it not only rallied from that channel line but also has broken above a corrective channel to a high, as of 8:00 AM EST, of 1.0173. It's possible the pair is going to retest that channel at 1.0135 or so. If the pair doesn't fall apart, i.e. collapse back into the channel and below, potential targets are 1.0333 (7/82 high) and 1.0435 (4/82 low). Support is in the 1.0003 area. Closes below that would signal a deeper correction is in store.

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.