EUR/USD 10 OCTOBER 2011

EUR/USD

No trade setup on EUR on Friday

Price fell hard late in Fridays session, finding resistance just past the 618 of the swing. If we get another bearish cs formation inside Fridays highs then it will be a sign to short. Else higher up at the 786, if we get a bearish cs formation after hitting the 786, we will have a reason to go short.

SHORT: WILL ONLY BE GOING SHORT IF:

We get another bearish cs formation from current levels, or higher up at the 786. Trade the cs formation inside Fridays high for 80 pips, and the 786 cs formation will be a ST to the BF786. Stops above the cs formations, 50 pips max.

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:

Price gets down to the BF786 and gives us a bullish cs formation for a long trade setup. If this occurs, place stop below the low of the cs formation, max 50 pips stop, limit will be at the786 since we would have had a 618 prior.

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