EUR/USD
The BF786 trade failed again yesterday after the bearish cs formation and price rallied a few pips higher, price then gave us another BF trade setup, but that was outside our trading hours. We are now at the 618 of the AB swing, if we get a bullish cs here we will go long, but we are also looking to sell into rallies.
SHORT: WILL ONLY BE GOING SHORT IF:
We normally only sell at the BF786, but today we will be looking to sell into a rally after a bearish cs formation, even if we don’t get to the BF786, we would hope that we go all the way to theBF 786, but the 50/618 will be good as well. The reason for this is the fact that Cable has taken out its low on the daily already, EUR will most likely follow that scenario, but the low is some 300 pips away.
LONG: WILL ONLY BE GOING LONG TODAY IF:
We get a bullish cs formation after hitting the 618/786. The limit on the 618 will be 50 pips, and the 786 entry will be a PT to the BF786. Why do I say this? You might think that I’m contradicting myself here because above I say sell into rallies down to the B low on the daily. But the reason is simple, price often rallies off the 786 to the BF786, if we then get a bearish cs formation, the chart is telling us that it is now ready to take out the A low.
NOTE: I’m weary of the bullish cs on the daily to take us to 4700, yesterdays failure is concerning, price might be heading down towards the 3968 lows over coming days, sterling has already broken its low. 4190 low will be key to open the downside.
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