Tuesday, 11 October 2011

EUR/USD 11 OCTOBER 2011



EUR/USD
We had a bearish cs formation yesterday which lost us 37 pips.

Price rallied yesterday negating the evening star formation of Friday and rallying to the A highs, but failing to take it out on a closing basis, so we are still in the AB downswing.
Today we will be looking to see if price finds resistance at the highs again by way of a bearish cs formation, or if we rally on up at take out the A high thereby starting a reversal on the 1H chart.

SHORT: WILL ONLY BE GOING SHORT IF:
We get another run at the highs and then get a bearish cs formation. Trade this formation as a ST down 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 the A high since we would have had an A prior bounce.

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

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