Tuesday, 20 September 2011

EUR/USD 20 SEPTEMBER 2011



EUR/USD
Price hit the BF786 and then gave us the bullish cs formation we were waiting for yesterday.

We are still in the downtrend on the 1H chart, with price having retraced to the BF786 yesterday. We are back at that price now. We are looking for a DABF786 trading day today where we are expecting price to rally off the lows towards the 3936 price. We will look to buy dips until 3936.

Else if we fall and take out yesterday’s lows, we still 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.     At the overnight highs – 3700/3715, if we get a bearish cs formation here we will short.
2.     Around 3900/3936, if we get a bearish cs formation here its telling us that the highs are holding as well.
3.     Else short 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 at the fib levels then we don’t 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 3926.

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

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