The pair has peeked back into the daily channel from which it dropped and is hovering around resistance just under .8514. This is after three days of hammering out a base in the .8450 area, the .618 retracement of 8143/8941 and a price support. Additional gains look possible but resistance continues up to .8560. This pair is tricky right now—reasonable arguments can be made for a bear flag, a three-wave corrective structure, an Elliott ending diagonal, and a normal corrective channel, and the confirmed head and shoulders pattern on the daily chart with a price target of .8363 (See last week's blog chart). Unfortunately, they contradict each other.
I'm holding off on charts this morning as the market is churning—trying to find direction.
© 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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