Wednesday, 21 September 2011

EUR/USD 21 SEPTEMBER 2011



EUR/USD
We are still in the BF786 long trade setup, entered in at 3625. Stops are at zero, limits set at 3920.

We are still in the downtrend on the 1H chart, with price having tested the BF786 again yesterday, and then rallied.  We are looking for a DABF786 trading day today where we are expecting price to rally towards the 3936 price. We will look to buy dips until 3936.

Else if we fall and take out yesterday’s lows, we will still be looking for a bullish cs inside the B low.

Only a fall beyond 3494 will negate this view.

SHORT: WILL ONLY BE GOING SHORT IF:
We need price up at either of these levels for a short entry:
1.     Around 3900/3936, if we get a bearish cs formation here its telling us that the highs are holding.
2.     Else shorts are only considered once price takes out 3934 and opens up the downside, we then have to wait for a B to form and a retracement back to the 618/786.

If we don’t get the cs formations we are looking for then we don’t enter a trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:
Since we have a DABF786 trading day today, we are looking for price to extend towards the 3936 price area, we will look to buy dips towards that price. Stops below the bullish cs formation, max 50 pips and limits set at 3920.

If we don’t get the cs formations we are looking for then we don’t trade.

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