EUR/USD 26 SEPTEMBER 2011

EUR/USD

We had a BF786 and a bullish cs formation on EUR, but stop was too big to take the trade on Friday, so no trade.

We are still in the bearish AB swing with price testing the lows now at the B low. Will wait to see if we break it on a sustained basis and go on to create a new AB swing, or if we find support here.

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 look for 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 are at BF territory at present, if we get a clear bullish cs formation at current levels then it will be a long entry. Stop will be placed below the low – 50 pips max and limits will be  80 pips since it’s a shallow bounce.

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