Euro moved down to 1.3574 before bouncing to 1.3727. The move down most likely completed an impulsive wave on the shorter-term charts so this rally is probably corrective. The bounce could take price to 1.3836/42, 1.3894 or 1.3905 before turning down again so, to the extent I trade today, I'll be looking for momentum weakness on the short-term charts and shorting any rally. I believe the pair will see 1.3335 again in the next few days.
On the weekly chart (not shown) the week is ending with a bearish candle after four weeks of indecisive candles. So unless we have a sizable rally today (not likely), the close is likely to be bearish (below 1.3820) and next week will begin with the bears in control.
© 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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