Euro has been stuck in an 80-pip range for the last 24 hours. The low of 1.3447 is in the middle of the 1.3463/39 support range. If it breaks below that then 1.3335 should be next and there are some layers of support down to 1.32. This is good for those still bullish on the Euro as it means some traders will take profits on shorts, thus boosting price. Whether enough will do that is a question as there's some evidence this could be part of a steeper drop.
The recent high has been 1.3527. While it's possible this will hold, there is strong resistance above at 1.3570/3650 if it doesn't. Above that is 1.3700, and the formidable 1.3825/85 (EW count, fibo, and 10 and 20 day SMA).
The general uncertainty is not good for trading.
© 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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