Forex Traders may consider this bearish forecast and potential for a  short position

22:40 GMT EUR/USD at 1.3590

My preferred bear entry price is the 1.3620-36 level looking for 1.3644/63 to cap as new resistance. My stop will need to be above 1.3669 to 1.3679 level.

If 3608-13 rejects and never gets to 3627′s or above, I will likely enter early as long as 3608/13 rejects. If it is a false rejection, I will likely increase the position below 3640/60.

If the pair never reaches the entry levels listed above but instead breaks 3580/75 level, tries to reload and then with new resistance set at 3609/3589-93 — I will enter that category BUT will cut that entry for a small loss if 3599-3609 does not cap the rebound. Then will use the PREFERRED entry above.

Profit targets: T1 at 1.3544/39 /33 to 1.3513 level,  T2 at 1.3507  to 1.3471 level, and T3 1.3441 level or below. Will book half-position for profits at or below 3545 and balance at or below 3479 BUT will run a 13 pip trailer on balance below 3519. “At or below” is based on the random nature that targets get blasted, or offer bounces. I always prefer to take the target levels listed IF the target is not rapidly breached without a bounce; I use stop for profit techniques versus limits;  if I am managing profit realtime. As always, if T1 is hit, I always move stop to +1 pip of entry for balance of position. Some traders may take 100% of profits at T1, it all depends on the speed of the movement.

Britt Maras –Senior Currency Strategist

This entry was posted on Wednesday, May 13th, 2009 at 6:36 pm and is filed under Trading Signals & Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.