EURUSD—3-hour

Euro looks very bullish and, in the prevailing sentiment, "unstoppable" as to 1.40. There are several price targets in the low 1.40 zone as I've previously blogged about. I'm long from 1.3866.

However, don't just jump on this train, long. First, the pair is at resistance with the high this morning of 1.3976. Second, NFP is coming out at 8:30AM EST. Price swings around this can take out otherwise good trades. Third, the pair could begin a corrective swing down.

Much safer for longs is to wait for a retracement around the 1.388/50. Below this be bearish with possible lows of 1.3713, 1.3650 and 1.3526.

© Dianne Fecteau, 2011. 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.