Wednesday, 31 August 2011

EUR/USD 31 AUGUST 2011


EUR/USD
We got the short entry yesterday after the bearish cs formation, limited out at 50 pips.

We are still in the bull AB swing on the 1H chart. Price bounced off the 50 yesterday. We are looking for price to dip deeper into the 618/786. We will however buy if we get another bullish cs formation at either yesterdays lows, or the 4326 lows which is near the 786 anyway.

If price just rallies from here on up then we have no trade setup, but look out for the BF786 and a bearish cs formation to se if we can short there.

SHORT: Will be going short only IF:
Price rallies to the BF786 and gives us a bearish sc formation, trade this as a PT to the 618, stop above the cs formation – 50pips max.

LONG: Will be going long today only IF:
We get either:
1.       A dip to yesterdays lows -4384 and a bullish cs formation – trade for a 60 pip limit.
2.       A dip to the 618 -4369 and a bullish cs formation- trade for a 60 pip limit.
3.       A dip to 4326/4320 – where we have a double bottom and a 786, if we get a bullish cs formation here its telling us that price is holding at this level. Trade this as a PT to the BF786.

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