Forex Market: EUR/USD Continues Bear Grind
Written by Britt Maras on June 16, 2009 – 7:01 pm -U.S. Dollar Index Striving To Maintain Bull Composure
If Forex Traders followed my commentary (Dollar Index Delivers Volatility to FX) and considered the preferred ‘boomerang’ resistance for a bear entry you may be pleased. We issued a real-time trade entry after the mid 3900’s was rejected and have banked and lock-in at least 40 pips per lot.
Currently I maintain a bullish outlook for the U.S. Dollar Index with a bearish forecast for the EUR/USD. I plan to issue an additional bear Trade Alert for the pair but I need to see some price action develop.
Resistances: immediate at 1.3845-57, 1.3881-97, 1.3917-25 and then 1.3970 levels
Supports: immediate at 1.3823-17, 1.3801-1.3791 to 1.3774/49, 1.3683, 1.3660 and then 1.3569 or lower to 1.3333
As suggested in last evening’s commentary – I hoped for the ‘boomerang’ trade opportunity to enter short the single pair. The only problem is this morning the business media at-large could not shout louder about some kind-of-head-and-shoulders setup in the eur/usd. In any event, again this evening and overnight – I will remain vigilant and be equally willing to take a bull position above key resistances listed above.
Conversely – I maintain the bearish outlook to sell a rise to key resistances with reasonably tight stops and/or make a bear entry at my T1 listed in Friday’s commentary at 1.3774 levels. Let’s get some rest and hope we don’t miss any fireworks; my guess is we need to do a looped d’ loop.
If we can make a rapid break of immediate support listed above for our current open short position that is locked in — and THEN set new resistance at 1.3797 level (+/- 13 pips) – then the door may be open for the big bear move. Let the lock-in protection run as is! I will issue Market Timing Alerts later.
Britt Maras – Senior Currency Strategist
Tags: britt maras, forex market, Forex Trader, market timing, u.s.dollar index
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