EUR/USD 23 SEPTEMBER 2011

EUR/USD

We lost 33 pips yesterday with the BF that failed.

We seem to have a lower top in place at 3936, with our B down at 3384, quite a big AB swing in play here. The trend is bearish although we cannot rule out a retracement before we continue down. We will look to buy bullish cs formations if we hit the BF786.

Else if price rallies from current levels then we look to sell rallies after bearish cs formations once prices hit our 618/786 fib levels higher up.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then need bearish cs formations as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price to continue down to our BF786 and then we are looking for a bullish cs formation after we hit the BF786. This will attract a limit of 80 pips, since it’s a shallow bounce, with a max stop below the cs formation of 50pips.

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